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

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