What Is the Profitability Index of an Investment with Cash

question 53

Multiple Choice

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

• A) .15
• B) .22
• C) .35
• D) .42

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Definitions:

Quantity

A specified amount or number of items.

Writing

The physical manifestation of language in the form of symbols or marks on surfaces like paper, used to communicate thoughts and ideas.

Benefit

An advantage or profit gained from something, often used in legal terms to describe gains in contracts or employment.

Debt

Money that is owed or due to another individual, entity, or institution.