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

question 75

Multiple Choice

If a project has a cost of $50,000 and a profitability index of 2,then:

• A) it has a negative NPV.
• B) its NPV could be positive or negative depending on the cost of capital.
• C) its cash flow is $100,000.
• D) it has a positive NPV.

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Definitions:

Sociologists

Scientists who study society and social behavior by examining the groups, cultures, organizations, social institutions, and processes that develop when people interact and work together.

Sudhir Venkatesh

An Indian American sociologist known for his ethnographic work on urban poverty, gangs, and housing projects in Chicago.

Japanese Americans

Refers to residents or citizens of the United States who are of Japanese ancestry, including those who migrated from Japan or are born in the U.S.

Arab Americans

Americans of Arab descent, who originate from various countries in the Arab world, contributing to the cultural and social fabric of the United States.