A Group of Employees of Unique Services Is to Be

question 124

Multiple Choice

A group of employees of Unique Services is to be surveyed with respect to a new pension plan. In-depth interviews are to be conducted with each employee selected in the sample. The employees are classified as follows. What is the probability that the first person selected is classified as a maintenance employee?

• A) 0.20
• B) 0.50
• C) 0.025
• D) 1.00

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Definitions:

Profitability Index

An instrument in finance for assessing the attractiveness of a project or investment, which is found by dividing the current value of forthcoming cash flows by the initial cost of the investment.

Present Value

The valuation in today's terms of a prospective future sum of money or cash inflows, utilizing a particular return rate.

Initial Cost

The initial expenditure required to acquire an asset or to start a project, incorporating all necessary expenses to bring it to a usable state.

Net Present Value

This signifies the net difference in present value terms of cash received versus cash paid out over an outlined time interval.