Initial cost is Rs 5000 and probability index is 3.2 then present value of cash flows is

The correct answer is A. Rs 8,200.00.

The present value of cash flows is calculated by using the following formula:

Present value = Future value / (1 + r)^n

where:

• Future value is the amount of money you expect to receive in the future
• r is the interest rate
• n is the number of years until you receive the money

In this case, the future value is Rs 5000, the interest rate is 3.2%, and the number of years is 1.

Plugging these values into the formula, we get:

Present value = Rs 5000 / (1 + 0.032)^1 = Rs 8,200.00

Option B is incorrect because it is the future value, not the present value.

Option C is incorrect because it is the amount of money you would receive if you invested Rs 5000 at 3.2% interest for 1 year.

Option D is incorrect because it is the present value of Rs 5000 if you invested it at 3.2% interest for 0 years.