What Is the Profitability Index (PI)of a Project That Requires

question 126

Multiple Choice

What is the Profitability Index (PI) of a project that requires an initial investment of $36,000 and pays after-tax cash flows of $10,000 in year 1, $18,000 in year 2, $15,000 in year 3, and $12,000 in year 4? Assume the discount rate is 9%.

• A)1.05
• B)1.16
• C)1.23
• D)1.38

---

Definitions:

Activist

An individual who actively promotes, impels, or supports a cause or policy, often seeking to bring about political or social change.

Labor Relations Systems

The framework of policies, practices, and relationships that govern interactions between employers, employees, and their representatives.

Workplace Flexibility

Refers to the adaptability of working conditions that allows employees to balance work and personal responsibilities more effectively.

Labor Relations

The study and practice of managing unionized employment situations.