Use the Following Information for Questions
Selma Inc -Using the Profitability Index, How Many of the Projects Are

question 110

Multiple Choice

Use the following information for questions
Selma Inc. is comparing several alternative capital budgeting projects as shown below:
.. $\begin{array}{lrrr}&&\text { Projects }\\&A&B&C\\\text { Initial investment } & \$ 80,000 & \$ 120,000 & \$ 160,000 \\\text { Present value of net cash flows } & 90,000 & 110,000 & 200,000\end{array}$
-Using the profitability index, how many of the projects are acceptable?

• A) 3
• B) 2
• C) 1
• D) 0

---

Definitions:

Brainstorming Process

A creative technique of generating a large number of ideas to solve a problem within a group, without immediate critique.

Electronic Brainstorming

A creative group problem-solving technique that uses electronic devices to gather ideas from participants simultaneously and anonymously.

Traditional Brainstorming

A creative problem-solving technique that involves generating a large number of ideas in a group setting, without immediate criticism.

Piggybacking

The act of attaching or linking something to an already existing system or process for an additional benefit or gain.