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:

Price Ceiling

A legally imposed limit on the price charged for a product, intended to prevent prices from reaching levels deemed too high.

Price Support Program

Government initiatives intended to maintain the market price of a good or service above its equilibrium level by buying excess supply or restricting supply.

Government

The system or group of people governing an organized community, often a state.

Farmers

Individuals or entities engaged in the practice of agriculture, cultivating plants and raising livestock for food, fiber, and other products.