Use the Table for the Question(s)below

question 20

Multiple Choice

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

• A)0.12.
• B)21.65.
• C)0.17.
• D)12.04.

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Definitions:

Benefit

An advantage or profit gained from something, including direct financial gains or more intangible positive outcomes.

Intrusion

An act of entering into a place or situation where one is unwelcome or not authorized.

Externality

A consequence of an industrial or commercial activity that affects other parties without this being reflected in market prices.

Uncompensated Impact

Uncompensated impact refers to effects borne by parties who are not directly involved in a transaction or activity and are not compensated for their losses.