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Because the profitability index measures how much value a project creates for each dollar that is invested, it is calculated as a . PV of

Because the profitability index measures how much value a project creates for each dollar that is invested, it is calculated as
a. PV of future cash flows divided by the initial cost.
b. initial cost divided by the PV of future cash flows.
c. internal rate of return divided by the initial cost.
d. net present value divided by the initial cost.

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