A Project Requires an Investment of $2,500 and Has a Net

question 105

Multiple Choice

A project requires an investment of $2,500 and has a net present value of $430. If the internal rate of return is 10%, what is the profitability index for the project?

• A) 0.25
• B) 2.33
• C) 0.70
• D) 1.17

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Definitions:

Graphic Sheet

A visual representation or chart used to organize information, data, or records systematically.

Restless

The inability to rest or relax as a result of anxiety, nervousness, or boredom.

Adequate Amounts

Sufficient quantities or levels of something, such as nutrients or resources, necessary to meet the needs or requirements of a situation or condition.

Pale And Cool

Describes a physical state where the skin appears lighter than normal and feels cold to the touch, often indicating poor circulation or shock.