Use the Table for the Question(s)below

question 30

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:

-The profitability index for project B is closest to:

• A)0.17
• B)12.64
• C)23.34
• D)0.12

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Definitions:

Liability Limitation

A clause in a contract that restricts the amount of compensation that can be claimed for breaches of the contract or other liabilities.

Cash Assets

Liquid funds or assets readily convertible into cash without significant loss in value.

Preferred Shares

Type of stock that grants holders priority for dividends over common stockholders and rights to assets in the event of liquidation.

Winding Up

The process of dissolving a business by disposing of its assets, paying off creditors, and distributing any remaining assets to shareholders or owners.