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Which of the Following Formulas Is Used to Calculate the Present

Question 31

Multiple Choice

Which of the following formulas is used to calculate the present value index?


A) Total present value of net cash flow / Equal annual net cash flows
B) Amount to be invested / Total present value of net cash flow
C) Equal annual net cash flows / Total present value of net cash flow
D) Total present value of net cash flow / Amount to be invested

Correct Answer:

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