Use the Following Information for Questions 106-108 $\text { Present Value of an Annuity of } 1$

question 40

Multiple Choice

Use the following information for questions 106-108.
Cleaners, Inc. is considering purchasing equipment costing $60,000 with a 6-year useful life. The equipment will provide cost savings of $14,600 and will be depreciated straight-line over its useful life with no salvage value. Cleaners requires a 10% rate of return. $\text { Present Value of an Annuity of } 1$
$\begin{array}{ll}\text { Periods } &8\%& 9 \% & 10 \% & 11 \%& 12 \%&15\%\\5&4.623&4.486&4.355&4.231&4.111&3.784\end{array}$

-What is the approximate profitability index associated with this equipment?

• A) 1.23
• B) 1.03
• C) 1.06
• D) .73

Recognize the necessity of eliminating non-value adding tasks for efficient work streamlining.

Understand the basic components and calculations involved in determining GDP.

Distinguish between real GDP and nominal GDP and understand the effects of inflation and deflation on them.

Identify the types of expenditures included and excluded from GDP.

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Definitions:

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Successfully completing tasks or fulfilling responsibilities as required or expected.

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The leader's attentiveness to feedback, ideas, and concerns from others, symbolizing openness and effective communication.

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A German-American psychologist known for his contributions to social, organizational, and applied psychology.