The Black Horse Is Currently Considering a Project That Will

question 56

Multiple Choice

The Black Horse is currently considering a project that will produce cash inflows of $11,000 a year for three years followed by $6,500 in Year 4.The cost of the project is $38,000.What is the profitability index if the discount rate is 9 percent?

• A).85
• B).93
• C)1.04
• D)1.09
• E)1.12

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Definitions:

Occipital Lobe

is the region of the brain located at the back of the head, responsible for processing visual information.

Pupils

The opening in the center of the iris of the eye, which regulates the amount of light that enters the eye.

Rods

Rod-shaped photoreceptors that are sensitive only to the intensity of light.

Feature Detectors

Neurons in the sensory cortex that fire in response to specific features of sensory information such as lines or edges of objects.