Question Content Area The present value index is computed using which of the following formulas? a. Amount to Be Invested ÷ Total Present Value of Net Cash Flow b. Amount to Be Invested ÷ Average Rate of Return c. Total Present Value of Net Cash Flow ÷ Average Rate of Return d. Total Present Value of Net Cash Flow ÷ Amount to Be Invested

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter16: Financially Troubled Ventures: Turnaround Opportunities?
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    The present value index is computed using which of the following formulas?

    a. Amount to Be Invested ÷ Total Present Value of Net Cash Flow
    b. Amount to Be Invested ÷ Average Rate of Return
    c. Total Present Value of Net Cash Flow ÷ Average Rate of Return
    d. Total Present Value of Net Cash Flow ÷ Amount to Be Invested
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