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Present value of future cash flows is Rs 2000 and an...

This question belongs to Commerce Financial Management
Financial Management
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Present value of future cash flows is Rs 2000 and an initial cost is Rs 1100 then profitability index will be

Answer & Solution
Correct Answer: Option B
Profitability index = Present value of future cash flow / Initial cost
= 2000 / 1100 = 1.82%.
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