An Investment Project Requires a Net Investment of $100,000 and Is

question 18

Multiple Choice

An investment project requires a net investment of $100,000 and is expected to generate annual net cash inflows of $25,000 for 6 years.The firm's cost of capital is 12 percent.Determine the profitability index for this project.

• A)1.50
• B)1.028
• C).028
• D).972

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Definitions:

Phylogeny

The evolutionary history and lineage of species or a particular group of organisms.

Deuterostome

A classification of animals defined by their developmental characteristics, where the anus forms before the mouth during embryonic development.

Echinoderms

Echinoderms are a group of marine invertebrates that include sea stars, sea urchins, and sand dollars, characterized by radial symmetry and a unique water vascular system.

Pseudocoelom

A fluid-filled body cavity lying between the intestines and outer body wall that is only partially lined with mesoderm in some invertebrates.