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:

Double Fertilization

A distinctive process in angiosperms whereby one sperm cell fertilizes the egg cell to form a zygote while another sperm cell combines with two polar nuclei to form an endosperm.

Flowering Plants

Flowering plants, also known as angiosperms, are plants that produce flowers and seeds enclosed within a fruit.

Integuments

Layers of protective tissue covering the body of an organism, such as skin, husks, or rinds.

Seed Coat

The protective outer layer of a seed that encases and protects the embryo.