The Profitability Index for a Project Costing $40,000 and Returning

question 22

Multiple Choice

The profitability index for a project costing $40,000 and returning $15,000 annually for 4 years at an opportunity cost of capital of 12% is:

• A) 0.139
• B) 0.320
• C) 0.500
• D)0.861

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Definitions:

Femur

The longest and strongest bone in the human body, located in the thigh, connecting the hip to the knee.

Thighbone

Another term for the femur, which is the longest and strongest bone in the human body, connecting the hip to the knee.

Pneum/o

A prefix in medical terms related to the lungs or air, usually used to denote conditions, procedures, or parts of the body involving the respiratory system.

Combining Form

A form or morpheme used in linguistic construction that combines with other forms to create words.