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

Question 121

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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