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:

Accommodation

In cognitive development, the process of altering one's existing schemas or ways of thinking in response to new information.

Equilibration

A concept in Piaget’s cognitive development theory referring to the process of achieving mental stability where the child's internal structures match or fit the external environment.

Assimilation

A cognitive process that involves incorporating new information into existing cognitive schemas, perceptions, and understanding.

Organization

The coordinated arrangement or structure of parts within a system, or the process of arranging and coordinating elements to achieve a unified whole.