Wrikeman Evaluates Future Projects by Using the Profitability Index Which Project Should Wrikeman Select If the Decision Is Based

question 97

Multiple Choice

Wrikeman evaluates future projects by using the profitability index. The company is currently reviewing five similar projects and must choose one of the following: $$\begin{array} { c c c } \text { Project } & \begin{array} { c } \text { Initial } \\\text { Investment }\end{array} & \begin{array} { c } \text { Present Value } \\\text { of Cash Inflows }\end{array} \\1 & \$ 100,000 & \$ 97,000 \\2 & 50,000 & 80,000 \\3 & 75,000 & 110,000 \\4 & 60,000 & 100,000 \\5 & 150,000 & 200,000\end{array}$$ Which project should Wrikeman select if the decision is based entirely on the profitability index?

• A) Project 1.
• B) Project 2.
• C) Project 3.
• D) Project 4.
• E) Project 5.

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Definitions:

Seasonal Disorder

A type of depression related to changes in seasons, often worsening during certain times of the year.

Major Depressive Disorder

A mental health disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities, significantly affecting daily functioning.

Physical Symptoms

Physical symptoms refer to any changes in the body that indicate a disease or disorder, affecting an individual's physical state and well-being.

Depression

An ailment in emotional health marked by consistent depressive emotions or detachment from pleasures, leading to significant obstructions in day-to-day life.