A Firm Is Reviewing a Project That Has an Initial

question 37

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 five, $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

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Definitions:

Pubic Hair

Body hair that grows in the genital area, signaling the onset of puberty and sexual maturation.

Average Age

The mean age of a specific population or demographic group.

Risky Behaviors

Actions that expose individuals to harm or significant risk of harm.

Unprotected Sex

Sexual intercourse without the use of contraceptives or barrier methods, increasing the risk of sexually transmitted infections (STIs) and unintended pregnancy.