A Project Has an Initial Cost of $125,000 and Generates

question 126

Multiple Choice

A project has an initial cost of $125,000 and generates a present value of net cash inflows of $150,000.What is the project's profitability index?

• A).20
• B)1.20
• C).83
• D)5.00

---

Definitions:

Quantity Demanded

The amount of a good or service that consumers are willing to buy at a specific price, at a given time.

Own Price Elasticity

A measure of how the quantity demanded of a good responds to a change in the price of that good, keeping other factors constant.

Athletic Shoes

are specially designed footwear aimed at enhancing performance in sports and physical activities.

Puma

A global athletic brand known for its footwear, apparel, and accessories designed for sports and fitness activities.