A project has an initial cost of $125,000 and generates a present value of net cash inflows of $150,000 . What is the project's profitability index?
a. .20
b. 1.20
c. .83
d. 5.00
B
Profitability Index = $150,000/$125,000 = 1.20
You might also like to view...
While information about a prospect should be collected in advance, it can be collected during the first sales call
Indicate whether the statement is true or false
Meta Inc pays $18,000 to buy stock in another company and an additional $350 in commissions. Three months later, Meta sells the stock for $19,000 . At the time of sale, Meta will recognize a:
a. A $650 loss b. A $1,000 gain c. A $350 loss d. A $650 gain
Which of the following best describes a country that is actively engaged in international trade and has robust manufacturing, service, and financial sectors?
A) subsistence economy B) raw materials exporting economy C) industrializing economy D) industrial economy E) free-trade economy
Petroleum, a relatively cheap nonrenewable energy source, is:
A. being increasingly depleted and is expected to run out in another 50 years, but in the meantime, improved retrieval techniques are being developed. B. expected to run out in another 10 years and needs to be replaced with renewable energy sources quickly. C. in abundant supply but is not environmentally clean. D. clean, cheap, and available, but its major issue as a fuel is that most of the reserves are located in countries whose leadership is critical of the industrialized world.