A Project with a Profitability Index of 1

question 133

Multiple Choice

A project with a profitability index of 1.156 also has net cash flows with a present value of $69,360. The project's internal rate of return was 10%. The initial investment was

• A) $66,000.
• B) $80,180.
• C) $60,000.
• D) $62,424.

Recognize and calculate goodwill arising from the acquisition of an interest in an associate.

Comprehend the implications of revaluations by an associate on the investor's financial statements.

Understand the accounting treatments and disclosures required for investments in associates including the discontinuation of equity method due to incurred losses.

Understand the concept and calculation of direct and indirect non-controlling interests (NCI) in a multi-level subsidiary structure.

---

Definitions:

Unknown Mean

A statistical term referring to the average value of a population or dataset that has not been determined.

Variance

A measure of the dispersion of a set of data points around their mean value.

Final Exam Scores

The grades obtained by students at the end of a course, which often culminate their learning and understanding of the subject material.

Normal Distribution

A probability distribution resembling a bell curve, symmetric around the average, indicating that occurrences close to the mean are more common than those further away.