Question

of a project's future
13. A project's profitability index is equal to the ratio of the
cash flows to the project's
(1 Point)
net present value; depreciable basis
present value, initial cash outlay
net present value initial cash outlay
present value depreciable basis​

Answer 1

Answer:

Profitability Index

Explanation:

Formula for NPV

NPV = (Cash flows)/( 1+r)i.

i- Initial Investment.

Cash flows= Cash flows in the time period.

r = Discount rate.

i = time period.