Present value of future cash flows is divided by an ... - Solved MCQs & Answer

656FinanceMedium

Present value of future cash flows is divided by an initial cost of project to calculate_______?

AProfitability index

BExchange index

CProject index

DNegative index

Correct answer

A. Profitability index

Explanation

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

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