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pishuonlain [190]
2 years ago
14

The management of Dewitz Corporation is considering a project that would require an initial investment of $65,000. No other cash

outflows would be required. The present value of the cash inflows would be $72,800. The profitability index of the project is closest to:A. 0.12B. 1.12C. 0.88D. 0.11
Business
1 answer:
son4ous [18]2 years ago
4 0

Answer:

It is 1.12 (B)

Explanation:

Profitability Index= PV of  Future cash flow/Initial Investment

                            = $72,800/$65,000

                            =1.12

The index is a useful tool for ranking investment projects and making decision most especially when there is limited capital availbal  and all the viable projects cannot be executed. It showed the value created per unit of investment.

Hence, the higher the profitability index, the more attractive the investment is.

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The situation here is that the appraiser is:

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Based on the given question, we can see than when an appraisal is made, the appraisal which is actually a written report that makes an estimate of the present value of a piece of property.

With this in mind, we can see that the appraiser preferred to take his payment from the percentage value of the <em>value of the property </em>which he appraised. This method is sure to give the appraiser more money than he would have made, especially if the value of the property was quite high.

Read more about appraisal reports here:

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2 years ago
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lana66690 [7]
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3 years ago
What is productive efficiency? question 18 options:
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6 0
3 years ago
In the context of robert merton's strain theory of deviance, _____ is a mode of adaptation in which people do not expect to be r
NeTakaya

Answer:

Ritualism

Explanation:

In this passage the term being mentioned is called Ritualism. This is a concept of Merton's Strain theory of deviance, that refers to the daily rituals that individuals experience every day throughout their lives even though they may not accept the values that are part of those daily tasks. This can be seen in students, as they go to school daily, not to get rich, but to be able to obtain and keep a job in order to survive.

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levacccp [35]

Answer:

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2 years ago
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