What Is the PI of a Project That Requires an Initial

question 75

Multiple Choice

What is the PI of a project that requires an initial investment of $36,000 and pays $10,000 in year 1,$18,000 in year 2,$15,000 in year 3,and $12,000 in year 4? Assume the discount rate is 9 percent and the tax rate is zero.

• A) 1.05
• B) 1.16
• C) 1.23
• D) 1.38

Recognize the importance of having a reasonable basis for claims made in product advertisements.

Understand the process of issuing, appealing, and enforcing cease-and-desist orders by the FTC.

Become aware of federal legislation regulating food, drugs, and consumer safety.

Calculate net price given list price and trade discount.

---

Definitions:

Price Increase

An adjustment made to the selling price of goods or services, often due to factors such as inflation, increased costs of production, or improvements in quality.

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased as a proportion of its previous value.

Unit Sales

The quantity of items sold by a company, not taking into account the revenue from these sales.

Traceable Fixed Expense

A fixed expense that can be directly associated with a specific business segment or product.