Use the Table for the Question(s)below

question 11

Multiple Choice

Use the table for the question(s) below.
Consider a project with the following cash flows in $:
-Assume the appropriate discount rate for this project is 15%.The profitability index for this project is closest to:

• A).14.
• B).22.
• C).60.
• D).15.

---

Definitions:

Hold Money

The act of retaining cash or money in accounts as savings or reserves, rather than investing or spending it.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price, holding all else constant.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, typically used to assess inflation.

Inflation Rate

The growth rate in the common price range for goods and services, downgrading the practical purchasing scope.