If a Project Has a Cost of $50,000 and a Profitability

question 4

Multiple Choice

If a project has a cost of $50,000 and a profitability index of 0.4, then:

• A)its cash inflows are $70,000
• B)the present value of its cash inflows is $30,000
• C)its IRR is 20 percent
• D)its NPV is $20,000

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Definitions:

Economic Development

The process by which the economic well-being and quality of life of a nation, region, or local community are improved according to targeted goals and objectives.

South Carolina

A state in the southeastern region of the United States, known for its historical significance, including its role in the American Civil War.

New England

A region located in the northeastern corner of the United States comprising six states: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, known for its colonial history, distinct seasons, and cultural heritage.

Triangular Trade

A historical trade system in the 16th through 19th centuries involving the transatlantic slave trade among Europe, Africa, and the Americas.