Project Mars' Only Cash Outlay Is Its Cost of $15,000

question 46

Multiple Choice

Project Mars' only cash outlay is its cost of $15,000. The project has a net present value of $18,000. Its profitability index is

• A)1.83.
• B)0.55.
• C)1.20.
• D)2.20.

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Definitions:

Descriptive Statistics

Statistical measures that summarize and describe the features of a collection of information, such as mean, median, and mode.

Summarizing Data

The process of presenting large amounts of data in a compact, easily interpretable form, often using statistical measures.

Collecting Data

The process of gathering and measuring information on variables of interest in an systematic fashion, enabling one to answer stated research questions, test hypotheses, and evaluate outcomes.

Empirical Evidence

Information acquired by observation or experimentation that is used to confirm the validity of a hypothesis or theory.