A Capital Budgeting Project Has a Net Investment of $250,000

question 15

Multiple Choice

A capital budgeting project has a net investment of $250,000 and is expected to generate net cash flows of $90,000 annually for 5 years. What is the profitability index at a 13% required rate of return?

• A)1.27
• B)1.80
• C)1.24
• D)1.30

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Definitions:

Listen Differently

Suggests the idea that individuals may interpret or understand auditory information in varied ways based on context, background, or personal biases.

Advising

Offering suggestions, guidance, or professional advice to individuals or organizations.

Active Listening

A communication technique involving fully focusing on, understanding, responding to, and remembering what is being said.

Mirrors Emotions

reflecting or expressing similar emotions that are being displayed by another person.