A Firm Is Reviewing a Project That Has an Initial

question 97

Multiple Choice

A firm is reviewing a project that has an initial cost of $71,000.The project will produce annual cash inflows,starting with year 1,of $8,000,$13,400,$18,600,$33,100,and finally in year 5,$37,900.What is the profitability index if the discount rate is 11 percent?

• A)0.92
• B)0.98
• C)1.02
• D)1.07
• E)1.12

---

Definitions:

Noise Suppression

Refers to techniques or methods used to reduce or eliminate unwanted signals or interference in electronic systems, improving signal quality.

EMI

Electromagnetic Interference, disturbances that affect an electrical circuit due to electromagnetic induction or radiation emitted from an external source.