A Project Has an Initial Cost of $125,000 and Generates

question 126

Multiple Choice

A project has an initial cost of $125,000 and generates a present value of net cash inflows of $150,000.What is the project's profitability index?

• A).20
• B)1.20
• C).83
• D)5.00

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Definitions:

Fleet National Bank

A former financial institution in the United States that was merged into Bank of America in 2004.

Forgery

The illegal act of creating, altering, or imitating objects, documents, or signatures with the intent to deceive or defraud.

Improper Presentment

Refers to the incorrect or invalid presentation of a document or piece of evidence in a legal proceeding.

On Time

The state of completing or arriving at a specified action or event at the scheduled or expected time.