(Ignore Income Taxes in This Problem

question 103

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.
-Rank the projects according to the profitability index, from most profitable to least profitable.

• A) J,K,I
• B) K,J,I
• C) K,I,J
• D) I,K,J

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Definitions:

Organizational Culture

The shared values, beliefs, and practices that characterize an organization and influence its members' behavior.

Management Practices

The array of techniques, strategies, and approaches employed by managers to effectively lead and run an organization.

Flexible Work Arrangements

Employment terms that allow employees to vary their work hours, locations, or schedules to better accommodate personal needs while meeting business demands.

Long Work Hours

Extended periods spent working beyond the standard workday, which can impact health, well-being, and work-life balance.