What Is the Profitability Index for an Investment with the Following

question 2

Multiple Choice

What is the profitability index for an investment with the following cash flows given a 9% required return? $$\begin{array} { c c } \underline{\text { Year }} &\underline{ \text { Cash Flow }} \\ 0 & - \$ 21,500 \\1 & \$ 7,400 \\2 & \$ 9,800 \\3 & \$ 8,900\end{array}$$

• A).96
• B).98
• C)1.00
• D)1.02
• E)1.04

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Definitions:

Recessive Gene

A type of gene that is not expressed in the phenotype unless two copies of the gene (one from each parent) are present.

Huntington's Disease

A genetic disorder that causes the progressive breakdown of nerve cells in the brain, affecting an individual's functional abilities and leading to cognitive decline and psychiatric issues.

Turner Syndrome

A chromosomal disorder affecting females, where one of the X chromosomes is missing or partially missing, leading to a variety of medical and developmental issues.

Heterozygous

Having two different alleles.