Calculate the Profitability Index for a Project with the Following $\begin{array}{ll}\text { Year } & \text { Cash Flow } \\0 & (15,000) \\1 & 5,000 \\2 & 8,000 \\3 & 10,000\end{array}$

question 75

Multiple Choice

Calculate the profitability index for a project with the following cash flows. Assume a cost of capital of 10% $\begin{array}{ll}\text { Year } & \text { Cash Flow } \\0 & (15,000) \\1 & 5,000 \\2 & 8,000 \\3 & 10,000\end{array}$

• A) 0.78
• B) 1.13
• C) 1.24
• D) 1.57

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Definitions:

Norm

A standard or guideline that is accepted and expected within a group, culture, or society, dictating behavior that is considered normal or appropriate.

Reciprocity

A social exchange principle where the actions of one party lead to a response by another party, typically in a manner that mirrors the original action.

Norm Of Reciprocity

A social expectation that dictates individuals should return favors and kindnesses that others have provided to them, creating a basis for cooperative behavior.

Social Exchange

A concept proposing that the formation of human connections is guided by an individual assessment of potential gains and losses, alongside an evaluation of other options.