The Following Information Is Available for a Potential Investment for Panda

question 83

Multiple Choice

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

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

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Definitions:

Precedent

A legal principle or rule established in a previous legal case that is either binding or persuasive for a court when deciding subsequent cases with similar issues or facts.

Legislation

Laws and statutes enacted by a governing body to regulate, authorize, sanction, grant, declare, or restrict.

CRTC

The Canadian Radio-television and Telecommunications Commission, a regulatory agency for broadcasting and telecommunications.

Administrative Tribunal

A quasi-judicial body established to handle disputes regarding administrative decisions made by governmental agencies.