Speedy Company Has Three Potential Projects from Which to Choose

question 50

Multiple Choice

Speedy Company has three potential projects from which to choose.Selected information on each of the three projects follows: $$\begin{array} { | l | c | c | c | } \hline & \text { Praject A } & \text { Praject B } & \text { Praject C } \\\hline \text { Investment required } & \mathbf { \$ 4 2 , 5 0 0 } & \mathbf { \$ 6 5 , 8 0 0 } & \mathbf { \$ 3 3 , 7 0 0 } \\\hline \text { Net present value of praject } & \mathbf { \$ 4 5 , 7 0 0 } & \mathbf { \$ 7 5 , 4 0 0 } & \mathbf { \$ 1 0 , 2 0 0 } \\\hline\end{array}$$ Using the profitability index,rank the projects from most profitable to least profitable.

• A)A,B,C
• B)C,B,A
• C)B,A,C
• D)B,C,A

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Definitions:

Coping Abilities

The range of skills, strategies, and behaviors that individuals use to manage and mitigate stress and adversity.

Traumatic

Refers to an experience or event that causes severe psychological distress or injury.

Stress

A feeling of emotional or physical tension that can come from any event or thought, making one feel frustrated, angry, or nervous.

Life Change Units

A measure used in the study of stress to quantify the amount of life change a person experiences, often used to predict the likelihood of stress-related health outcomes.