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The profitability index, sometimes called the benefit ratio is calculated by;

a) diving the cash flows by the inital investment

b) dividing the future value of the cash flows by the inital investment

c) diving the net present value of the cash flows by the inital investment

d) dividing the present value of the cash flows by the inital investment

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92167136

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