Present value of future cash flows is Rs 2000 and an initial cost is Rs 1100 then profitability index will be
A. 55.00%
B. 1.82
C. 0.55
D. 1.82%
Answer: Option B
Solution (By Examveda Team)
Profitability index = Present value of future cash flow / Initial cost= 2000 / 1100 = 1.82%.

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