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

---

Definitions:

Status Quo

The existing state of affairs or current condition, often used in the context of political or social issues.

Misrepresented Age

The act of presenting a false age or the incorrect age information, intentionally or unintentionally, in a situation where age is a relevant factor.

Suffered Losses

Refers to the financial, physical, or emotional damages incurred by an individual or entity, often used in legal contexts to determine compensatory needs.

Contractual Obligations

Duties that a party is bound to perform as per the terms and conditions specified in a contract.