Assume a Project Has Cash Flows of -$54,300, $18,200, $37,300

question 81

Multiple Choice

Assume a project has cash flows of -$54,300, $18,200, $37,300, and $14,300 for Years 0 to 3, respectively. What is the profitability index given a required return of 12.6 percent?

• A) .946
• B) .98 
• C) 1.02
• D) 1.06 
• E) 1.00

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Definitions:

Normal

An expected condition or state, often considered to be the standard or average.

Complicated

Involving many different and confusing aspects; not simple or easy to resolve.

Worden's Mourning

A theory outlining four tasks that people move through in the grieving process, aimed at helping individuals cope with loss.

Widower

A man who has lost his spouse through death and has not remarried.