Question: Which is the right formula for B7? C A B 1 Year Cash Flows 2 0 (58,000) 3 1 18,000 4 2 35,000 5 3

Which is the right formula for B7? C A B 1 Year Cash Flows 2 0 (58,000) 3 1 18,000 4 2 35,000 5 3 50,000 6 WACC 12% 7 Profitability Index ? 8 O ENPV(B6,B3:B5)/B2 =NPV(B6, B2:B5)/-B2 O ENPV(B6,B3:B5)/-B2 =(NPV(B6.B3 B5)+B2)/B2+1

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