Economics · Financial Management
Indicate the correct code from the following that does NOT represent the Profitability Index (PI) for an investment proposal of a firm: (a) Average annual net income earned divided by the investment (b) Equating annual net cash inflows to investment (c) Ratio of present value of future cash inflows to investment making it equal to zero (d) Ratio of present value of future cash inflows to present cash outflows
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(a), (b) and (c) only✓
- 2(a) and (c) only
- 3(b) and (d) only
- 4(a), (b) and (d) only
Correct answer
(a), (b) and (c) only
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