Net present value is the difference between the: present value of future net cash flows and the capital investment. future cash inflows and the capital investment. future cash inflows and the present value of the capital investment. present value of future net income and the capital investment. The profitability index used to compare alternative projects is computed by dividing the O present value of net cash flows by the net present value. O cash flows by the initial investment. O cash flows by the net present value. present value of net cash flows by the initial investment