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    Exam 8: Net Present Value and Other Investment Criteria
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    What Is the Profitability Index for a Project Costing $40,000
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What Is the Profitability Index for a Project Costing $40,000

Question 86

Question 86

Multiple Choice

What is the profitability index for a project costing $40,000 and returning $15,000 annually for 4 years at an opportunity cost of capital of 12%?


A) 0.139
B) 0.320
C) 0.500
D) 0.861

Correct Answer:

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