The Relevant Discount Rate for the Following Set of Cash

question 21

Multiple Choice

The relevant discount rate for the following set of cash flows is 14 percent.What is the profitability index?

• A) 0.89
• B) 0.93
• C) 0.99
• D) 1.03
• E) 1.07

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Definitions:

Decentralized

Refers to the distribution of functions, powers, people, or things away from a central location or authority.

Outsourced

The practice of contracting out certain business processes or tasks to external providers rather than handling them internally.

Dignity

The state or quality of being worthy of honor or respect.

Productivity

The measure of efficiency in which resources, such as labor and capital, are converted into goods, services, or outcomes.