What Is the Profitability Index of a Project That Has

question 75

Multiple Choice

What is the profitability index of a project that has an initial cash outflow of $600, an inflow of $250 for the next 3 years and a cost of capital of 10 percent?

• A) 0.667
• B) 2.036
• C) 1.036
• D) 2.739

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Definitions:

Regio-

Refers to the specific region or orientation of atoms or groups in a molecule during a chemical reaction.

Mechanism

A detailed explanation of the step-by-step process by which chemical reactions occur.

Product

A substance produced during a chemical reaction.

Reagents

Substances or compounds used in chemical reactions to either drive the reaction forward or to detect, measure, and analyze other substances.