What will be the profitability index with discount rate of 12% for the cash flows given below?

What will be the profitability index with discount rate of 12% for the cash flows given below?
Correct Answer <table class="table-style-1"> <tr> <td>year</td> <td>0</td> <td>1</td> <td>2</td> <td>3</td> <td>4</td> <td>5</td> </tr> <tr> <td>Net Cash Flow in (Rs.)</td> <td>-40000</td> <td>15000</td> <td>14000</td> <td>13000</td> <td>12000</td> <td>11000</td> </tr></table> 1.192

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Related Questions

Arrange the following categories of cash inflows and cash outflows in a correct order.
1. Cash flows from investing activities.
2. Cash flows from financing activities.
3. Cash flows from operating activities.
Which of the following are examples of cash flow from operating activities as per AS-7?
1. Cash receipts from the sale of goods and the rendering of services.
2. Cash receipts from disposal of intangible assets.
3. Cash receipts from royalties, fees, commissions and other revenue.
4. Cash payments to suppliers for goods and services.
5. Cash proceeds from issuing shares or other similar instruments.
6. Cash payments to and on behalf of employees.
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Select the correct answer of the Assertion (A) and Reason (R).
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Reason (R) Measure of profitability helps companies determine whether to expand, reduce or eliminate any product or marketing activities to ensure profitability control.
Which of the following activities should be shown separately in the cash flow statement prepared as per Accounting Standard-3?
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2. Cash flow from operating activities
3. Cash flow from financing activities
4. Cash flow from investing activities
5. Cash flow from miscellaneous activitie
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I. Cash flow from borrowing activities.
II. Cash flow from operating activities.
III. Cash flow from financing activities.
IV. Cash flow from investing activities.
V. Cash flow from miscellaneous activities.
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2. Pay-back period method concerns more with the recovery of cost than profitability
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