A Project Requires a Net Investment of $450,000

question 4

Multiple Choice

A project requires a net investment of $450,000. It has a profitability index of 1.25 based on the firm's 12% cost of capital. Determine the net present value of the project.

• A) $112,500
• B) $562,500
• C) $1,012,500
• D) $140,625

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Definitions:

8-Ounce Servings

A measurement term commonly used in dietary guidelines to specify the volume of a single serving of a beverage or liquid food item, equivalent to one cup.

Dietary Fiber

Indigestible components of plant foods that aid in digestion, help regulate blood sugar, and reduce cholesterol levels.

High Fiber

A diet rich in foods containing a lot of fiber, which is beneficial for digestive health and can help prevent constipation, diabetes, and heart disease.

Irritable Bowel Syndrome

A chronic gastrointestinal disorder that affects the large intestine, causing symptoms such as abdominal pain, bloating, and altered bowel habits.