Bill Plans to Open a Do-It-Yourself Dog Bathing Center in a Storefront

question 93

Multiple Choice

Bill plans to open a do-it-yourself dog bathing center in a storefront. The bathing equipment will cost $160,000. Bill expects the after-tax cash inflows to be $40,000 annually for seven years, after which he plans to scrap the equipment and retire to the beaches of Jamaica.

Assume the required return is 15%. What is the project's PI? Should it be accepted?

• A) 0.88; yes
• B) 0.88; no
• C) 1.00; indifferent
• D) 1.04; yes
• E) 1.04; no

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Definitions:

Crisis Intervention Strategies

Techniques and methods used to offer immediate, short-term help to individuals who experience an event that produces emotional, mental, physical, and behavioral distress.

Intimate Partner Violence

A pattern of abusive behavior in a relationship, used by one partner to gain or maintain power and control over the other.

Primary Intervention

Actions taken to prevent disease or injury before it occurs, by eliminating or reducing risk factors.

Suicide Precautions

Measures implemented to prevent an individual from harming or killing themselves, often used in medical or psychiatric settings.