A 50- Year Project Has a Cost of $500,000 and Has

question 56

Multiple Choice

A 50- year project has a cost of $500,000 and has annual cash flows of $100,000 in years 1-25, and $200,000 in years 26-50. The company's required rate is 8%. Given this information, calculate the profitability index of the project.

• A) 1.76
• B) 2.06
• C) 2.16
• D) 2.46
• E) 2.76

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Definitions:

Hematocrit

Percentage of blood volume occupied by erythrocytes.

ADH Production

The synthesis of Antidiuretic Hormone, also known as vasopressin, which is responsible for regulating water balance in the body by controlling the amount of water reabsorbed by the kidneys.

Body Fluids Osmolality

A measure of the solute concentration in body fluids, important for maintaining proper osmotic balance across cell membranes.

Buffering

The process by which pH is regulated and maintained within living organisms, preventing harmful shifts in acidity or alkalinity.