Zellars,Inc

question 10

Multiple Choice

Zellars,Inc.is considering two mutually exclusive projects,A and B.Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two.Project B costs $120,000 and is expected to generate $64,000 in year one,$67,000 in year two,$56,000 in year three,and $45,000 in year four.Zellars,Inc.'s required rate of return for these projects is 10%.The profitability index for Project A is

• A) 1.27.
• B) 1.22.
• C) 1.17.
• D) 1.12.

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Definitions:

Forensic Psychology

An area of specialization in psychology that focuses on the application of research and practice to matters of law, including proceedings in criminal or civil courts or in front of quasi-judicial bodies such as administrative boards and tribunals.

Objectivity And Neutrality

Principles ensuring detachment and impartiality in observation, analysis, or judgment, free from personal biases or external influences.

Strategic Priority Analysis

The process of identifying and ranking the most critical factors or goals that will drive a business's strategy and decision-making.

Inbound Logistics

The activities related to receiving, storing, and distributing inputs internally needed for production.