Q495
An initial cost is Rs 6000 and probability index is 5.6 then present value of cash flows will be
A.
Rs 25,000.00
B.
Rs 28,000.00
C.
Rs 33,600.00
AnswerD.
Rs 30,000.00
Answer: Option C
Solution
Answer: Option C
Solution:
Present value of cash flow = Initial cost × Profitability index
= 6000 × 5.6 = Rs. 33600.00.