The Following Information Is Available for a Potential Investment for Panda

question 58

Multiple Choice

The following information is available for a potential investment for Panda Company: $$\begin{array} { l l } \text { Initial investment } & \$ 40,000 \\\text { Net annual cash inflow } & 10,000 \\\text { Net present value } & 18,112 \\\text { Salvage value } & 5,000 \\\text { Useful life } & 10 \text { yrs. }\end{array}$$ The potential investment's profitability index is

• A)4.00.
• B)2.85.
• C)2.50.
• D)1.45.

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Definitions:

Animal Husbandry

The branch of agriculture concerned with the care, breeding, and management of domestic animals.

Cultural Practices

Refer to the collective habits, traditions, rituals, and values shared by a group of people that contribute to their unique social identity.

Openness To Change

A personality trait that indicates how much a person is willing to consider new ideas, experiences, and values different from their own.

Conservatism

Conservatism is a political and social philosophy that promotes retaining traditional social institutions and values, typically in opposition to drastic changes.