Q479
Initial cost is Rs 5000 and probability index is 3.2 then present value of cash flows is
A.
Rs 8,200.00
B.
Rs 16,000.00
AnswerC.
Rs 10,000.00
D.
Rs 1,562.50
Answer: Option B
Solution
Answer: Option B
Solution:
Present value of cash flow = Initial cost × Profitability index = 5000 × 3.2 = Rs. 16000.