InnerC,Inc

question 26

Multiple Choice

InnerC,Inc.is currently considering an five-year project that has an initial outlay or cost of $60,000.The future cash inflows from its project for years 1 through 5 are the same at $20,000.InnerC has a discount rate of 15%.Because of concerns about funds being short to finance all good projects,InnerC wants to compute the profitability index (PI) for each project.What is the PI for InnerC's current project?

• A)About 0.82
• B)About 0.92
• C)About 1.02
• D)About 1.12

Understand the concept of standard hours and how they relate to productivity and efficiency in manufacturing.

Evaluate the impact of purchasing decisions on materials price variances.

Assess the control of spending on manufacturing overhead through variances analysis.

Apply standard costing to support business decision-making related to production and budgeting.

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Definitions:

Systems Software

The collection of software that manages computer hardware resources and provides common services for computer programs.

Personal Finance

The management of financial activities such as savings, investment, and budgeting by an individual or a household.

Checkbooks

Books containing blank checks connected to a checking account, allowing the account holder to write checks for financial transactions.

Investments

The act of allocating resources, usually money, with the expectation of generating an income or profit.