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    Corporate Finance Study Set 4
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    Exam 8: Net Present Value and Other Investment Criteria
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    If a Project Has a Cost of $50,000 and a Profitability
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If a Project Has a Cost of $50,000 and a Profitability

Question 3

Question 3

Multiple Choice

If a project has a cost of $50,000 and a profitability index of .4, then:


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

Correct Answer:

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