Q472
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
AnswerC.
0.55
D.
1.82%
Answer: Option B
Solution
Answer: Option B
Solution:
Profitability index = Present value of future cash flow / Initial cost = 2000 / 1100 = 1.82%.