The Black Horse Is Currently Considering a Project That Will

question 56

Multiple Choice

The Black Horse is currently considering a project that will produce cash inflows of $11,000 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 9 percent?

• A).85
• B).93
• C)1.04
• D)1.09
• E)1.12

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Definitions:

Clean Air Act

A comprehensive federal law in the United States that regulates air emissions from stationary and mobile sources to protect public health and the environment from air pollution.

Hazardous Air Pollutants

Substances in the air that can cause harm to the environment or health of humans.

Clean Air Act

A comprehensive federal law in the United States that regulates air emissions from stationary and mobile sources to protect public health and the environment.

Environmental Impact Statement

A document prepared to describe the effects proposed projects will have on the environment, assessing both the positive and negative impacts.