A Proposed Project Has an Initial Cost of $200,000 and Cash

question 8

Multiple Choice

A proposed project has an initial cost of $200,000 and cash flows of -$13,200,$124,500,and $187,900 for Years 1 to 3,respectively.Victoria,the boss,insists that only projects that can return at least $1.10 in today's dollars for every $1 invested can be accepted.She also insists on applying a discount rate of 14 percent to all cash flows.Based on these criteria,the project should be

• A)accepted because the PI is 0.89.
• B)rejected because the PI exceeds 1.
• C)accepted because the PI is 1.17.
• D)rejected because the PI is 1.06.
• E)rejected because the PI is 0.95.

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Definitions:

Heterosexual

A sexual orientation characterized by an enduring pattern of emotional, romantic, or sexual attractions exclusively to persons of the opposite sex.

Cultures of Honor

Social contexts where individuals place a high value on personal status, strength, and the willingness to use aggression to defend reputation.

Marital Violence

Acts of physical aggression and violence that occur between partners within the context of marriage.

Intellectual Superior

Pertains to an individual or group possessing higher intellectual capabilities or achievements when compared to another.