What Is the Profitability Index for an Investment with the Following

question 95

Multiple Choice

What is the profitability index for an investment with the following cash flows given a 9% required return?

• A).96
• B).98
• C)1.00
• D)1.02
• E)1.04

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Definitions:

Hydrogen Bond

An insubstantial attachment between two molecules produced by the electrostatic allure between a proton of one molecule and an electronegative atom of the other.

Ions

Atoms or molecules that have lost or gained one or more electrons, thus acquiring an electric charge.

Respective Charges

The specific electrical charges on particles or objects, usually defined as positive or negative, which determine their electromagnetic interactions.

Solvent

A substance, typically a liquid, capable of dissolving other substances to form a solution.