Profitability index is the:
A) difference between a present value of the project?s future cash flows and the cost of implementing the project.
B) present value of a project?s future cash flows divided by the initial cost of the project.
C) ratio of initial cost of a project to the total cash inflows from the project.
D) accounting profit earned on a project divided by the amount invested to acquire the project?s assets.
Correct Answer:
Verified
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