(Ignore Income Taxes in This Problem

question 78

Multiple Choice

(Ignore income taxes in this problem.) The management of Cerra Corporation is considering three investment projects I, J, and K. Project I would require an investment of $18,000, Project J of $42,000, and Project K of $85,000. The present value of the cash inflows would be $19,260 for Project I, $45,780 for Project J, and $91,800 for Project K.
-The profitability index of investment project J is closest to:

• A) 0.08
• B) 0.91
• C) 0.09
• D) 1.09

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Definitions:

Contingent Work

Employment arrangements that are temporary or freelance in nature, often without the long-term commitments or benefits associated with full-time work.

Third Sector

The segment of society that includes non-profit organizations and non-governmental entities that serve public interests and societal needs.

Global Commodity Chain

A global chain of manufacturing and delivery activities through which a product travels before it arrives at the consumer.

Resistance Strategies

Methods or tactics employed by individuals or groups to oppose, challenge, or withstand social, political, or economic power structures.