Generate a present value index


An investment that costs $5,000 will produce annual cash flows of $2,000 for a period of 4 years. Given a desired rate of return of 10%, the investment will generate a present value index of:

A. 2.500.
B. 1.268.
C. 0.789.
D. 7.745.

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Accounting Basics: Generate a present value index
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