The Davis Corporation Is Considering an Investment in a Project

question 161

Multiple Choice

The Davis Corporation is considering an investment in a project that generates a profitability index of 1.3.The present value of the cash inflows on the project is $44,000.What is the net present value of this project?

• A)$10,154
• B)$13,200
• C)$57,200
• D)$33,846

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Definitions:

Poverty

A socioeconomic condition characterized by a significant lack of financial resources or income, leading to an inability to meet basic living needs.

Welfare Dependency

A situation where individuals or families rely on government welfare benefits as their primary source of income, often criticized for discouraging work effort.

Employed White Men

A demographic group consisting of men who are identified as White (race) and are actively engaged in paid employment.

Black Females

Refers to women of African descent or those who identify as Black, focusing on their unique experiences, identities, and societal positions.