The Black Horse Is Currently Considering a Project That Will

question 108

Multiple Choice

The Black Horse is currently considering a project that will produce cash inflows of $12,000 a year for three years followed by $6,500 in year 4.The cost of the project is $38,000.What is the profitability index if the discount rate is 7 percent?

• A)0.96
• B)0.99
• C)1.04
• D)1.09
• E)1.12

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Definitions:

Order Of

Pertains to the sequence or arrangement of things following a particular pattern or rule.

HDC Status

Status as a Holder in Due Course, which refers to a holder of a negotiable instrument who took it for value, in good faith, and without notice of any defect or claim.

Security

A measure or mechanism put in place to protect against unauthorized access, alteration, or destruction of data or physical property.

Debt

The amount of money that is owed or due to be paid by an individual or entity to another.