If a Project Costing $40,000 Has a Profitability Index of 1.00

question 136

Multiple Choice

If a project costing $40,000 has a profitability index of 1.00 and the discount rate was 8%, then the project's internal rate of return was

• A) less than 8%.
• B) equal to 8%.
• C) greater than 8%.
• D) undeterminable.

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Definitions:

Download

The process of transferring files or data from one computer system to another, typically from a server on the Internet to a personal device or computer.

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business, including liabilities.

Transfer of Ownership

The legal process by which the title of a property or asset is moved from one party to another.

Franchise

A business model where one party (the franchisor) grants another party (the franchisee) the rights to use its trademark and business systems and processes to produce and market goods or services according to certain specifications.