Use the Table for the Question(s)below

question 22

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects with cash flows in $:
-The profitability index for project B is closest to:

• A)23.34.
• B)12.64.
• C)0.17.
• D)0.12.

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Definitions:

Infant-Industry Argument

A justification for protectionist policies that asserts new industries need to be shielded from international competition until they are mature and competitive enough.

Implementation

refers to the process of executing a plan, project, or method to completion.

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.

Exporting

The act of sending goods or services produced in one country to another country for the purpose of selling them there.