Ryner Corporation is considering three investment projects: S, T, and U. Project S would require an investment of $20,000, Project T of $69,000, and Project U of $83,000. No other cash outflows would be involved. The present value of the cash inflows would be $23,200 for Project S, $77,970 for Project T, and $94,620 for Project U. Rank the projects according to the profitability index, from most profitable to least profitable. (Ignore income taxes.)
A. U, S, T
B. U, T, S
C. S, U, T
D. T, S, U
Answer: C
You might also like to view...
A company with substantial operating profits prepares its statement of cash flows using the indirect method. The gain on the sale of a long-term investment should be disclosed separately as a(n)
a. inflow from operating activities. b. adjustment to net income in the reconciliation of net income to cash from operating activities. c. inflow from investing activities. d. outflow from investing activities.
Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of
A. channel conflict caused by inefficient communication between channel members. B. open communication among the channel members. C. methods of channel coordination designed to reduce ambiguity. D. negotiating territorial issues among regional distributors of a product. E. allowing one member of the channel to take the role of channel captain.
Which of the following statements concerning the proposed optional federal charter for life insurers is (are) true?
I. Large insurers operating in many states would more likely prefer a state charter while smaller, regional, insurers would more likely choose a federal charter. II. Proponents of the federal charter argue that it would speed the development and approval of new products. A) I only B) II only C) both I and II D) neither I nor II
A(n) ________ may be brought by one or more shareholders to enforce a corporate right, or to remedy a wrong to the corporation when the directors of the corporation fail or refuse to take appropriate action.
A. derivative action B. class action C. representative action D. individual shareholder action