The Timeline of an Investment Is Shown Above

question 10

Multiple Choice

The timeline of an investment is shown above.If the cost of capital is 5%,what is the profitability index of this investment?

• A)0.098
• B)0.105
• C)0.256
• D)0.368

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Definitions:

Central Division

A segment or unit within an organization that is responsible for specific tasks or operations, often based in a central geographic location or serving a central function.

Sales Budgets

Detailed projections of a company’s sales revenue for a specific period, used for planning and control purposes.

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the expected cost during a specific period.

Manufacturing Overhead Budget

A planned document detailing the expected manufacturing overhead costs for a specific period, helping managers in the decision-making process regarding the allocation of resources.