Profitability index of Project 'A' is 1.20167 when its cash flow is discounted at 12%. Initial investment on project was ₹ 3,00,000. This project generates equal cash flow over the five years time. How much cash flow wil

CS Executive · Financial and Strategic Management · PYQS · December 2024
Profitability index of Project 'A' is 1.20167 when its cash flow is discounted at 12%. Initial investment on project was ₹ 3,00,000. This project generates equal cash flow over the five years time. How much cash flow will be generated by the project each year ?
(A) ₹ 80,000
(B) ₹ 81,794
(C) ₹ 1,00,000
(D) ₹ 1,21,000

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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