(Ignore Income Taxes in This Problem

question 56

Multiple Choice

(Ignore income taxes in this problem. ) The management of Dewitz Corporation is considering a project that would require an initial investment of $65,000.No other cash outflows would be required.The present value of the cash inflows would be $72,800.The profitability index of the project is closest to:

• A)0.12
• B)1.12
• C)0.88
• D)0.11

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Definitions:

Ethically Responsible

Pertains to decisions and actions guided by moral principles, focusing on doing what is right and beneficial for society and the environment.

Beverage Company

A business that produces drinks, which can include soft drinks, juices, bottled water, and alcoholic beverages, for consumer consumption.

Corporate Social Responsibility

An operational plan for businesses that incorporates attention to social and environmental issues within their daily activities and stakeholder relations.

Ethical Decision Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.