Perkins Company Is Considering Several Investment Proposals,as Shown Below

question 8

Multiple Choice

Perkins Company is considering several investment proposals,as shown below: In what order do the proposals rank in terms of preference using the profitability index?

• A) D,B,C,A
• B) B,D,C,A
• C) B,D,A,C
• D) A,C,B,D

---

Definitions:

Capacitance

Refers to the amount of electric charge that a capacitor can hold, measured in Farads, at a given voltage.

Reactive Power

The component of electrical power that does not result in useful work, measured in VARs (volt-amps reactive), and is generated by reactive components like capacitors and inductors.

Inductive Reactance

A measure of the opposition that an inductor presents to alternating current, due to the magnetic field created by the current.

Capacitive Reactance

The resistance that a capacitor offers to alternating current, depending on the frequency of the current and the capacitor value, measured in ohms.