How is the profitability index calculated? A) The present value of th

How is the profitability index calculated?

A) The present value of the net cash flows minus the initial investment.
B) The present value of the net cash flows /plus the initial investment.
C) The present value of the net cash flows divided by the initial investment.
D) The initial investment divided by the present value of the net cash flows.

 

 

ANSWER

C

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