Initial cost is Rs 5000 and probability index is 3.2 then present value of cash flows is
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
C). Rs 10,000.00
D). Rs 1,562.50
1 answers
Rs 16,000.00
Present value of cash flow = Initial cost × Profitability index
= 5000 × 3.2 = Rs. 16000.
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