A Project Has an Initial Cost of $38,300 and Anticipated

question 40

Multiple Choice

A project has an initial cost of $38,300 and anticipated cash flows of $9,200,$18,700,$14,600 for Years 1 to 3,respectively.What is the profitability index value if the required return is 9.5 percent?

• A).86
• B).92
• C).99
• D)1.09
• E)1.16

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Definitions:

Cannon-Bard Theory

A theory of emotion that proposes that physiological arousal and emotional experience occur simultaneously and independently in response to a stimulus.

Subcortical Brain Activity

Neural operations occurring in the regions of the brain beneath the cerebral cortex, involved in functions such as emotion, memory, and motor control.

Cannon-Bard Theory

An idea positing that while emotional reactions and physiological responses appear concurrently, they operate independently.

Mugger

An individual who attacks someone with the intention of robbing them.