The Profitability Index for a Project Costing $40,000 and Returning

question 86

Multiple Choice

The profitability index for a project costing $40,000 and returning $15,000 annually for four years at an opportunity cost of capital of 12 percent is:

• A)0.139
• B)0.320
• C)0.500
• D)0.861

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Definitions:

Theory Of Mind

A common sense understanding of how the mind works.

Mental Representations

Internal images, ideas, or concepts that stand in for objects, events, or states of affairs in the outside world, allowing individuals to think, dream, and reason.

Mental Representations

Internal images or symbols of external reality, which play a key role in cognitive processes such as reasoning and problem-solving.

Appearance-reality Distinction

The cognitive ability to differentiate between how things appear and how they actually are.