A Project Has an Initial Cost of $100,000 and Generates

question 128

Multiple Choice

A project has an initial cost of $100,000 and generates a present value of net cash inflows of $120,000.What is the project's profitability index?

• A).20
• B)1.20
• C).80
• D)5.00

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Definitions:

Holder

A person or entity that possesses a negotiable instrument, such as a check or bond, and has the legal right to enforce it.

Gift

A voluntary transfer of property or funds without receiving anything in return or expectation of return.

Negotiable Instrument

A written promise or order to pay a specific amount of money that can be transferred to another party under certain conditions.

Misspelled Name

An error in the way a person's name is spelled on a document or in a database, which can lead to issues or confusion.