Solved

If a Project Has a Cost of $50,000 and a Profitability

Question 4

Multiple Choice

If a project has a cost of $50,000 and a profitability index of 0.4, then:

A) its cash inflows are $70,000
B) the present value of its cash inflows is $30,000
C) its IRR is 20 percent
D) its NPV is $20,000

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