Solved

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

Question 77

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%.
D) its NPV is $20,000.

Related Questions

Q17: What is the minimum cash flow that

Q25: When choosing among mutually exclusive projects, the

Q28: Borrowing and lending projects usually can be

Q37: If a project has multiple IRRs, the

Q41: For many firms the limits on capital

Q74: When we compare assets with different lives,we

Q78: The NPV of an investment made today

Q80: A project's opportunity cost of capital is:<br>A)

Q98: When projects are mutually exclusive, selection should

Q102: When you are considering whether to replace