Which of the following best describes the profitability index?
A) an index of projects based on their net income
B) the ratio of present value of net cash inflows to initial investment
C) the ratio of total cash inflows to initial investment
D) an array of possible investment outcomes at different discount rates
B
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Scholars have identified six influence strategies for gaining and using power—information exchange, recommendations, promises, threats, legalistic pleas, and requests
Indicate whether the statement is true or false
KidCo Cereal Company sells "Sugar Corns" for $2.50 per box. The company will need to buy 20,000 bushels of corn in 6 months to produce 40,000 boxes of cereal. Non-corn costs total $60,000
What is the company's profit if they purchase call options at $0.12 per bushel with a strike price of $1.60? Assume the 6-month interest rate is 4.0% and the spot price in 6 months is $1.65 per bushel. A) $6,504 profit B) $8,005 loss C) $12,064 profit D) $11,293 loss