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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Definitions:

Coercive Power

The ability of a person to influence others' behavior by punishing them or threatening to punish them if they do not comply with their directives.

Cross-Generational Procedure

Approaches or methods that involve multiple generations, often to facilitate understanding, learning, or problem-solving across age groups.

Idle Rich Hypothesis

A theory suggesting that people who inherit wealth or do not need to work for a living may lack motivation or drive, leading to unproductive or leisure-focused lifestyles.

Hatfields And McCoys

A reference to a long-standing and violent feud between two families of the American rural South in the late 19th century, symbolizing intense and prolonged conflict.