What Would Be the Weighted Average Profitability Index of the Following

question 66

Multiple Choice

What would be the weighted average profitability index of the following two investments, given the firm only has $250 to invest?
Project A: Cost = $120, NPV = 80
Project B: Cost = $100, NPV = 75

• A) .62
• B) .67
• C) .75
• D) .79

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Definitions:

Dependent Relationship

A type of interpersonal connection characterized by one party relying heavily on another for emotional, financial, or physical support.

Constructive Relationship

A type of relationship characterized by positive, supportive interactions that contribute to the personal growth and well-being of the individuals involved.

Constructively

In a way that is helpful, positive, or beneficial, often contributing to the improvement or development of something.

Selfishly

Acting with primary concern for one's own interest or benefit, often at the expense of others.