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

question 49

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 PV = 15,000

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Definitions:

Elevation

A term often used in medical and healthcare settings indicating the raising of a body part, typically to reduce swelling and improve blood flow.

Electrical Burn

A type of injury caused by electric current passing through the body, potentially damaging tissues or causing cardiac arrest.

Faulty Electrical Wiring

Electrical systems or circuits that are improperly installed or damaged, increasing the risk of fires or malfunctions.

High-Voltage

refers to electrical energy at a level high enough to inflict damage, harm, or death upon contact or capable of performing a substantial amount of work.