A 25- Year Project Has a Cost of $1,500,000 and Has

question 71

Multiple Choice

A 25- year project has a cost of $1,500,000 and has annual cash flows of $400,000 in years 1-15, and $200,000 in years 16-25. The company's required rate is 14%. Given this information, calculate the profitability index of the project.

• A) 1.74
• B) 1.50
• C) 1.25
• D) 1.00
• E) 0.75

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Definitions:

CDI/BDI Marketing Dashboard

A graphical interface that displays key performance indicators relating to Category Development Index (CDI) and Brand Development Index (BDI) for strategic marketing decision-making.

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Division of the consumer market into specific groups based on varying household characteristics, aimed at targeted marketing.

CDI/BDI Marketing Dashboard

A tool that combines Category Development Index (CDI) and Brand Development Index (BDI) metrics to measure how well a brand is performing within specific categories or markets.

Fruit Drinks

Beverages made from fruit juice concentrates or fruit flavors, often sweetened and sometimes mixed with water or other liquids.