The profitability index is calculated by _________.   Multiple choice question. dividing the initial investment by the sum of the future cash flows dividing the sum of the future cash flows by the initial investment dividing the PV of the future cash flows by the initial investment dividing the initial investment by the PV of the future cash flows

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter19: Lease Financing
Section: Chapter Questions
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The profitability index is calculated by _________.

 

Multiple choice question.

dividing the initial investment by the sum of the future cash flows

dividing the sum of the future cash flows by the initial investment

dividing the PV of the future cash flows by the initial investment

dividing the initial investment by the PV of the future cash flows

 

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