A Project Requires an Investment of $2,500 and Has a Net

question 105

Multiple Choice

A project requires an investment of $2,500 and has a net present value of $430. If the internal rate of return is 10%, what is the profitability index for the project?

• A) 0.25
• B) 2.33
• C) 0.70
• D) 1.17

---

Definitions:

Ethical Climate

The collective understanding within an organization about what is deemed right or wrong, significantly influencing individual and group decision-making behaviors.

Ethical Behavior

Conduct based on recognized principles of right and wrong, guiding professional and personal actions in a morally responsible way.

Performance Management

The process of creating a work environment in which people can perform to the best of their abilities to meet company goals.

Monetary Bonuses

Financial rewards granted to employees for achieving specific performance targets or as recognition for exceptional work.