The Following Information Is Available for a Potential Investment for Panda

question 83

Multiple Choice

The following information is available for a potential investment for Panda Company: $\begin{array} { l r } \text { Initial investment } & \$ 95,000 \\\text { Net annual cash inflow } & 20,000 \\\text { Net present value } & 36,224 \\\text { Salvage value } & 10,000 \\\text { Useful life } & 10 \text { yrs. }\end{array}$ The potential investment's profitability index is

• A)4.75.
• B)3.22.
• C)2.62.
• D)1.38.

---

Definitions:

Bootstrap Estimate

A statistical technique used to approximate the sampling distribution of an estimator by resampling with replacement from the original sample.

Bias

A systematic error that occurs when a process leans towards a particular outcome, often leading to unfair results.

Resamples

The practice of randomly drawing samples from a dataset multiple times, each time potentially drawing the same observation more than once, to perform statistical inference.

Income

Money received, typically on a regular basis, for work or through investments.