Calculate the Profitability Index for a Project That Has a Net

question 56

Multiple Choice

Calculate the profitability index for a project that has a net present value equal to -$10,000.The project's net investment is $20,000, and the firm has a 40 percent marginal tax rate.

• A)-0.5
• B)0
• C)0.8
• D)None of these

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Definitions:

Self-managing Work Team

is a group of employees tasked with a particular project or objectives with the autonomy to manage themselves.

Allocating Tasks

The process of distributing work activities or tasks among team members based on skills, availability, or other criteria.

Self-managing Teams

Groups of employees that are granted autonomy to make decisions and manage their work and processes without the direct oversight of management.

Traditional Work Group

A conventional team structure in an organization where members have specific roles and tasks, collaborating towards a common goal without high autonomy or flexibility.