Use the Following Table for Questions 109-111 $\text { Present Value of an Annuity of } 1$

question 59

Multiple Choice

Use the following table for questions 109-111. $\text { Present Value of an Annuity of } 1$
$\begin{array}{rrrr}\text { Periods } & 8 \% & 9 \% & 10\%\\1 & .926 & .917 & .909 \\2 & 1.783 & 1.759 & 1.736 \\3 & 2.577 & 2.531 & 2.487\end{array}$
-A company has a minimum required rate of return of 10%. It is considering investing in a project that costs $50,000 and is expected to generate cash inflows of $25,000 at the end of each year for three years. The profitability index for this project is

• A) .80.
• B) 1.00.
• C) 1.24.
• D) 1.27.

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Definitions:

Transference

A psychoanalytic concept where emotions initially felt in childhood relationships are redirected or applied to others in adulthood.

Unconscious Rivalry

A competition between individuals that is not recognized or acknowledged by those involved, often driven by subconscious motives.

Resistance

The act of rejecting or resisting something, often through opposing actions or reasoned debate.

Misinterpretation

The act of understanding or interpreting information incorrectly.