The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be ____________?

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A0.0319

B3.19

C5450

D0.31 times

Correct answer

A. 0.0319

Explanation

0.0319 is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be ____________? - Answer and Explanation | Academy of Pakistan