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The profitability index is calculated by: Select one: a. dividing the present value of cash inflows by the present value of the cash outflows b.

The profitability index is calculated by:

Select one:

a.

dividing the present value of cash inflows by the present value of the cash outflows

b.

multiplying the discount rate by the initial investment

c. dividing the initial investment by the present value of future cash flows

d.

multiplying the initial investment by the present value of cash flows

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