A Project Requires an Initial Investment of $70,000 and Has

question 114

Multiple Choice

A project requires an initial investment of $70,000 and has a project profitability index of 0.932. The present value of the future cash inflows from this investment is:

• A)$70,000
• B)$36,231
• C)$135,240
• D)Cannot be determined from the data provideD.Project profitability index = Net present value of the project ÷ Investment required

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Definitions:

Due Care

A standard of diligence that a reasonable person exercises to avoid harm to other persons or their property.

Crib Safe

Refers to ensuring that an infant's crib adheres to safety standards to prevent accidents or injury.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.

Strict Liability

A legal doctrine that holds an individual or entity responsible for damages or harm caused by their actions or products, regardless of fault or intent.