The Black Horse Is Currently Considering a Project That Will

question 97

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 four. 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

---

Definitions:

Jawless Fishes

A group of fish characterized by their lack of a true jaw, examples include lampreys and hagfishes.

Primitive Vertebrates

Early forms of vertebrates, such as fish and amphibians, that show basic features of the vertebrate lineage and provide insight into evolutionary history.

Cartilaginous Fish

Cartilaginous fish are a class of fishes that have skeletons made entirely out of cartilage, rather than bone, including sharks, rays, and skates.

Aquatic Environment

An ecosystem located within a body of water, encompassing both freshwater and marine habitats.