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:

Normally Distributed

Describes a statistical distribution where data points are symmetrically distributed around the mean, forming a bell-shaped curve.

Understock Quantity

The amount by which inventory levels fall short of the minimum required to meet demand, leading to potential stockouts.

Acting Independently

Refers to entities or individuals making decisions or taking actions without reliance on or consultation with others, often emphasizing autonomy and self-reliance.

Optimal Quantity

The most efficient amount of a product or service that minimizes costs and maximizes profitability.