If a Project Costing $80,000 Has a Profitability Index of 1.00

question 44

Multiple Choice

If a project costing $80,000 has a profitability index of 1.00 and the discount rate was 12%, then the present value of the net cash flows was

• A) $80,000.
• B) less than $80,000.
• C) greater than $80,000.
• D) undeterminable.

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Definitions:

Compliant Personality

Characterized by a tendency to agree with others or to obey rules and norms with little resistance.

Adler

Alfred Adler, an Austrian medical doctor, psychotherapist, and founder of the school of individual psychology, known for introducing the concept of the inferiority complex.

Compliant Personality

A personality trait characterized by a predisposition to agree with others and yield to social pressure or expectations.

Neurotic Trend

Patterns of thinking, feeling, and behaving that are maladaptive and stem from unresolved psychological conflicts.