Please Review the Information on 4 Potential Investments -
Under Conditions of Capital Rationing, Which Project Would Be

question 98

Multiple Choice

Please review the information on 4 potential investments:
$\begin{array}{|r|r|r|r|r|}\hline&\text { Project A }&\text { Project B }&\text { Project C }&\text { Project D }\\\hline \text { Initial investment } & \$ 200,000 & \$ 250,000 & \$ 300,000 & \$ 90,000 \\\hline \text { PV of cash inflows } & \$ 285,000 & \$ 295,000 & \$ 420,000 & \$ 94,000 \\\hline \text { Payback period (years) } & 7.2 & 6.0 & 9.5 & 2.0 \\\hline \text { NPV of project } & \$ 85,000 & \$ 45,000 & \$ 120,000 & \$ 4,000 \\\hline \text { Profitability inclex } & 1.43 & 1.18 & 1.40 & 1.04\\\hline \end{array}$
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Under conditions of capital rationing, which project would be favored?

• A) Project A
• B) Project B
• C) Project C
• D) Project D

Understand the bankruptcy process, including different chapters and their purposes.

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Understand the regulatory framework controlling business operations, including zoning, health insurance requirements, and workplace safety.

Recognize the essentials and enforceability of contracts, including the necessity for written contracts in specific cases.

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