Cheryl Peck Purchased a Computer Network for Her Classroom

question 71

Multiple Choice

Cheryl Peck purchased a computer network for her classroom. The computer network cost $100,000. She estimates that she can charge $500 for one session in the classroom. Cheryl knows that enrollment will increase over time. She estimates 50 students the first year, 75 students the second year, 100 students the third year, and 150 students the fourth year. If her cost of capital is 16 percent, what is the approximate profitability index?

• A) 1.88
• B) 1.08
• C) 1.23
• D) 1.19

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Definitions:

Over-Written

The process of replacing old data with new data in a storage location, eliminating the previous content.

PLC Programming Software

Software used for writing, debugging, and deploying the control logic for programmable logic controllers.

Manufacturer's PLC

A Programmable Logic Controller designed and produced by a specific manufacturer, serving as a critical component in industrial automation systems.