A project has an initial cost of $100,000 and generates a present value of net cash inflows of $120,000 . What is the project's profitability index?
a. .20
b. 1.20
c. .80
d. 5.00
B
Profitability Index = $120,000/$100,000 = 1.20
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The maker of the note is the one who is to pay the specified amount of money
Indicate whether the statement is true or false
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