If a Project Has a Cost of $50,000 and a Profitability

question 3

Multiple Choice

If a project has a cost of $50,000 and a profitability index of .4, then:

• A) its cash inflows are $70,000.
• B) the present value of its cash inflows is $20,000.
• C) its IRR is 20%.
• D)its NPV is $20,000.

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Definitions:

Third-party Conflict

Involves the intervention of an external agent to help resolve a disagreement or dispute between two other parties.

Process Control

The practice of monitoring and adjusting processes to ensure they meet desired outcomes, often used in manufacturing and production.

Outcome Control

The regulation and monitoring of results or outputs, often in a business or organizational context.

Bargaining Positions

The contextual stances parties take in negotiation scenarios influenced by their needs, desires, expectations, and the power balance.