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:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Net Realizable Value

Net Realizable Value is the estimated selling price of goods, minus the estimated costs of completion and necessary selling costs, used for inventory valuation and accounts receivable.

Inventory

The merchandise and supplies a company maintains with the end purpose of selling or manufacturing.

Periodic Inventory System

A method of inventory management where inventory levels and cost of goods sold are updated in the accounting records on a periodic basis, such as monthly or annually.