Gordon Corporation Is Considering a 30 Year Project

question 27

Multiple Choice

Gordon Corporation is considering a 30 year project.The present value of all future cash flows from the project is $825,000.Its initial investment is $475,000.Calculate the Profitability Index on this project.

• A)0.74
• B)0.84
• C)1.14
• D)1.74

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Definitions:

Encoding Failure

A situation where information does not enter the brain's long-term memory and hence cannot be recalled later.

Implicit Memory

Implicit memory refers to the unconscious retention of information, which influences behavior without conscious recollection.

Ebbinghaus Forgetting Curve

A hypothesis that describes the decrease in ability of the brain to retain memory over time, where memories are lost exponentially with time.

Implicit Memory

A type of long-term memory that enables us to perform tasks without conscious awareness of these previous experiences.