If a Project Has a Cost of $50,000 and a Profitability

question 4

Multiple Choice

If a project has a cost of $50,000 and a profitability index of 0.4, then:

• A)its cash inflows are $70,000
• B)the present value of its cash inflows is $30,000
• C)its IRR is 20 percent
• D)its NPV is $20,000

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Definitions:

Point-Of-Purchase Displays

Promotional or marketing materials placed at the point of purchase to attract customers and encourage immediate buying.

Countertop Literature

Promotional or informational printed materials designed to be displayed on counters or tables, often in retail or service environments.

Premium

refers to the amount paid for an insurance policy or the additional cost above the normal price for a product or service perceived to be of higher quality.

CRM Software

Customer Relationship Management software; a tool that helps businesses manage, record, and evaluate their interactions with current and potential customers.