What Is the Profitability Index for an Investment with the Following

question 46

Multiple Choice

What is the profitability index for an investment with the following cash flows given a 14.5 percent required return?

• A)0.94
• B)0.98
• C)1.02
• D)1.06
• E)1.11

---

Definitions:

Dominance Structuring

The psychological process through which humans achieve confidence in their decisions. The four phases of dominance structuring are pre-editing, identifying one promising option, testing that promising option for dominance, and structuring the dominance of the option selected.

Psychological Process

Pertains to the cognitive, emotional, and behavioral functions and activities of the mind.

Dominance Structuring

The organization or arrangement of elements in a group or system based on a hierarchy of power, importance, or influence.