Ben Lake Enterprises Is Currently Considering a Project That Will

question 31

Multiple Choice

Ben Lake Enterprises is currently considering a project that will produce cash inflows
Of $3500 a year for three years followed by $1200 a year for two more years.The cost of the project is $10 000.What is the profitability index if the discount rate is 7 per cent?

• A)0.96
• B)0.98
• C)1.00
• D)1.06
• E)1.10

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Definitions:

Self-actualization

The achievement or actualization of one's abilities and potentials, particularly seen as a universal drive or necessity in all individuals.

Self-respect

The regard for one's own well-being and dignity, often considered a crucial component of healthy self-esteem.

Optimal Experience

Also known as "flow," a state in which an individual is fully immersed in an activity, experiencing a heightened sense of focus, involvement, and enjoyment.