Charles Inc $\begin{array}{lr} \text { Initial investment} &\$50000\\ \text {PV of cash inflows } &55000\\\end{array}$

question 80

Multiple Choice

Charles Inc.has the following information available regarding one of the projects it is considering:
$\begin{array}{lr} \text { Initial investment} &\$50000\\ \text {PV of cash inflows } &55000\\\end{array}$

The profitability index of this project is:

• A) 5000
• B) .9090
• C) 1.10
• D) 105 000

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