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

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Definitions:

Pyramidal Neuron

A type of excitatory neuron found in areas of the brain such as the cerebral cortex, characterized by a triangular-shaped cell body.

Sensory Neuron

Cell that detects or carries sensory information into the spinal cord and brain.

Motor Neuron

A type of neuron responsible for conveying signals from the nervous system to muscles, inducing muscle contraction.

Association Cells

Neurons located in the brain's cortex that connect sensory and motor areas, and are involved in the integration of sensory inputs and cognitive processes.