Profitability index of Project is 1.50 when its cash flow is discounted at 12%. Initial investment on project was ₹1,44,200. This project generates equal cash flow over the five year's time. How much cash flow will be ge

CS Executive · Financial and Strategic Management · PYQS · December 2023
Profitability index of Project is 1.50 when its cash flow is discounted at 12%. Initial investment on project was ₹1,44,200. This project generates equal cash flow over the five year's time. How much cash flow will be generated by the project each year ?
(A) ₹50,000
(B) ₹60,000
(C) ₹52,615
(D) ₹71,220

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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