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

question 121

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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