The Timeline of an Investment Is Shown Above

question 58

Multiple Choice

The timeline of an investment is shown above.If the cost of capital is 5%,what is the profitability index of this investment?

• A) 0.098
• B) 0.105
• C) 0.256
• D) 0.368
• E) 0.412

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Definitions:

Section 17(a)

Section 17(a) typically refers to a specific provision within a particular legal framework or document, needing clarification regarding the context (e.g., in securities law, it refers to a section of the Securities Act of 1933 addressing fraud).

1933 Act

The 1933 Act, officially the Securities Act of 1933, is a U.S. law enacted to govern the initial sale of securities by issuers to the public, aiming to ensure transparency and prevent fraud.

Material Fact

A fact that if known might have influenced the decision of a party in making a contract, agreement, or understanding.

Illegal Insider Trading

The unethical and illegal practice of trading securities based on material, non-public information.