Webley Corp

question 60

Multiple Choice

Webley Corp. is considering two expansion options, but does not have enough capital to undertake both. Project W requires an investment of $100,000 and has an NPV of $10,000. Project D requires an investment of $80,000 and has an NPV of $8,200. If Webley uses the profitability index to decide, it would

• A) choose D because it has a higher profitability index.
• B) choose W because it has a higher profitability index.
• C) choose D because it has a lower profitability index.
• D) choose W because it has a lower profitability index.

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Definitions:

South Carolina

A state in the southeastern United States known for its subtropical beaches, marshlike sea islands, and historical significance in the American Civil War.

Negro Rule

A derogatory term historically used to describe periods or attempts of governance by African Americans, particularly in the post-Civil War South during Reconstruction in the United States.

Redeemers

A political coalition in the Southern United States during the Reconstruction era, aiming to restore the pre-Civil War social order and suppress the rights of formerly enslaved people.