A Project Has Expected Cash Inflows, Starting with Year 1

question 111

Multiple Choice

A project has expected cash inflows, starting with Year 1, of $900, $1,200, $1,500, and finally in Year 4, $2,000.The profitability index is 1.11 and the discount rate is 12 percent.What is the initial cost of the project?

• A)$3,899.16
• B)$4,098.24
• C)$3,692.71
• D)$3,211.06
• E)$4,250.00

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Definitions:

Anaerobic Bacteria

Bacteria that can live and grow in environments lacking oxygen.

Wound Drainage

The flow of fluid, which may contain blood, pus, or other liquids, from a wound, indicating the body's response to injury or infection.

Exudate

Fluid, such as pus or clear fluid, that leaks out of blood vessels into nearby tissues as a result of inflammation or injury.

Superficial Wounds

Injuries that affect only the surface layers of the skin, often requiring minimal medical treatment.