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.

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Definitions:

Form 5768

An IRS form used by 501(c)(3) organizations electing to make expenditures to influence legislation (lobbying) under the expenditure test.

Nonprofit Organization

A nonprofit organization is a type of entity that operates for public or social benefit, without the primary aim of making profits for owners or shareholders.

501(c)(4)

A designation by the IRS for nonprofit organizations that are allowed to engage in some political activities, provided that these activities do not become their primary focus.

Political Campaign Activity

Activities designed to support or oppose political candidates or political parties, typically involving advertising, fundraising, and public engagement.