Use the Following Table for Questions 109-111 $\text { Present Value of an Annuity of } 1$

question 59

Multiple Choice

Use the following table for questions 109-111. $\text { Present Value of an Annuity of } 1$
$\begin{array}{rrrr}\text { Periods } & 8 \% & 9 \% & 10\%\\1 & .926 & .917 & .909 \\2 & 1.783 & 1.759 & 1.736 \\3 & 2.577 & 2.531 & 2.487\end{array}$
-A company has a minimum required rate of return of 10%. It is considering investing in a project that costs $50,000 and is expected to generate cash inflows of $25,000 at the end of each year for three years. The profitability index for this project is

• A) .80.
• B) 1.00.
• C) 1.24.
• D) 1.27.

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Definitions:

Resource Investment

The allocation of resources, such as time, money, and effort, towards activities that are expected to yield benefits.

Attractive People

Individuals who are generally perceived by others as having pleasing physical features, often influenced by societal standards of beauty.

Self-Esteem

A person's overall subjective emotional evaluation of their own worth; it is a judgment of oneself as well as an attitude toward the self.

Less Helpful

Refers to a reduced tendency to assist others, which may be influenced by factors like the presence of bystanders or personal inconvenience.