An investment that costs $5,000 will produce annual cash flows of $2,000 for a period of 4 years.Given a desired rate of return of 8%,what is the present value index? (Do not round your intermediate calculations.Round your answer to three decimal points. )
A) 0.755.
B) 1.600.
C) 2.500.
D) 1.325.
Correct Answer:
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