Using the Profitability Index, Which of the Following Mutually Exclusive

question 32

Multiple Choice

Using the profitability index, which of the following mutually exclusive projects should be accepted?
Project A: NPV = $6,000;NINV = $50,000
Project B: NPV = $10,000;NINV = $120,000
Project C: NPV = $8,000;NINV = $80,000

• A)A
• B)B
• C)C
• D)all projects should be accepted

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Definitions:

Clients

Individuals or organizations that make use of the professional services or advice offered by a business or professional.

Underemployment

A situation where individuals are working in jobs that do not utilize their skills, abilities, or education level, often leading to lower income and job dissatisfaction.

Unemployment

The situation of being out of work and actively seeking employment.

Depression

A common and serious medical illness that negatively affects how you feel, the way you think, and how you act, leading to feelings of sadness and/or a loss of interest in activities.