The Net Present Value of a Project's Cash Inflows Is

question 26

Multiple Choice

The net present value of a project's cash inflows is $2,716 at a discount rate of 12 percent.The profitability index is 1.09 and the firm's tax rate is 34 percent.What is the initial cost of the project?

• A)$2,314.07
• B)$2,018.50
• C)$2,428.32
• D)$2,491.74
• E)$2,066.67

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Definitions:

Experimenter Bias

The potential influence that a researcher's expectations or preferences may have on the outcome of an experiment, often unconsciously affecting the results.

Selection Bias

A distortion in a statistical analysis resulting from the method of collecting samples that is not random and therefore not representative of the population being studied.

Participant Bias

The influence that subjects in an experiment might have on the outcome due to their awareness of being observed or expectations about the experiment.

Random Sample

A sample that gives every member of the population an equal chance of being selected.