The ratio which is obtained by dividing the present value of future cash inflows by the present value of cash out flows is called | Faculties

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Q. The ratio which is obtained by dividing the present value of future cash inflows by the present value of cash out flows is called

(A) Net Present Value
(B) IRR
(C) Profitability Index
(D) Average rate of return

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✅ Correct Answer: (C) Profitability Index

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