(Ignore Income Taxes in This Problem

question 169

Multiple Choice

(Ignore income taxes in this problem.) The management of Cantell Corporation is considering a project that would require an initial investment of $47,000. No other cash outflows would be required. The present value of the cash inflows would be $55,930. The profitability index of the project is closest to:

• A)1.19
• B)0.81
• C)0.19
• D)0.16

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Definitions:

Strategic Planning

The process of defining a business's strategy or direction and making decisions on allocating resources to pursue this strategy.

Autocratic Leadership

A leadership style characterized by individual control over all decisions and little input from team members, often leading to quick decision-making but lower employee satisfaction.

Subordinates

Employees or team members who are ranked lower in the organizational hierarchy and are usually subject to the authority of a supervisor.