Given the Following Information and Assuming a CCA Rate of 20

question 279

Multiple Choice

Given the following information and assuming a CCA rate of 20%, what is the profitability index of this project? Initial investment = $400,000; life = five years; before-tax cost savings = $150,000 per
Year; salvage value = $30,000 in year 5; tax rate = 34%; discount rate = 14%.

• A) 0.45
• B) 0.74
• C) 1.07
• D) 1.65
• E) 1.98

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Definitions:

Psychological Research

The scientific study of individuals' behaviors, thoughts, and emotions through systematic observation, experimentation, and analysis.

Natural Selection

A process by which species adapt to their environment as individuals with beneficial traits survive and reproduce more successfully than others.

Behaviourism

A theory of learning based on the idea that all behaviors are acquired through conditioning, initiated by interactions with the environment.

John Watson

An American psychologist often cited as one of the founders of behaviorism, emphasizing the importance of observable behaviors over internal phenomena like thoughts and feelings.