The Management of Leitheiser Corporation Is Considering a Project That

question 111

Multiple Choice

The management of Leitheiser Corporation is considering a project that would require an initial investment of $44,000. No other cash outflows would be required. The present value of the cash inflows would be $59,330. The profitability index of the project is closest to (Ignore income taxes.) :

• A) 1.35
• B) 0.65
• C) 0.35
• D) 0.26

---

Definitions:

Packaging

The process of designing and producing containers or wrappers for products to be sold or shipped.

Job Descriptions

A detailed account of the responsibilities, duties, required qualifications, and reporting relationships of a particular job.

Intern

A person, often a student or recent graduate, who works within an organization for a limited period of time to gain work experience, usually at a low salary or without pay.

Site Engineers

Professionals who oversee and manage the technical, organizational, and safety aspects of construction projects on site, ensuring that work is completed efficiently and to specification.