What Is the Profitability Index of an Investment with Cash

question 4

Multiple Choice

What is the profitability index of an investment with cash flows in years 0 thru 4 of -340, 120, 130, 153, and 166, respectively, and a discount rate of 16 percent?

• A).15
• B).22
• C).35
• D).42

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Definitions:

Fallacy

A fallacy is a mistaken belief or error in reasoning, often resulting in invalid arguments.

Socialized Healthcare

A healthcare system in which the government owns and operates healthcare facilities and providers, with the aim of providing health services to all members of a society.

Fallacy Of Subjectivism

A logical fallacy that occurs when someone argues that something is true or good merely because it is true or good for them personally.

Fallacy

An error in reasoning that renders an argument logically invalid.