Crowley Corporation Is Considering Three Investment Projects: F, G, and H

question 86

Multiple Choice

Crowley Corporation is considering three investment projects: F, G, and H. Project F would require an investment of $21,000, Project G of $49,000, and Project H of $82,000. No other cash outflows would be involved. The present value of the cash inflows would be $21,210 for Project F, $57,820 for Project G, and $95,120 for Project H. Rank the projects according to the profitability index, from most profitable to least profitable.

• A)F, H, G
• B)G, H, F
• C)H, F, G
• D)H, G, F

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Definitions:

Imagined Elements

Components or aspects of thought that exist purely in the mind and are not based on actual sensory experiences or reality.

Repressed Memories

Memories that have been unconsciously blocked due to being associated with a high level of stress or trauma but may potentially be recovered.

Roediger-McDermott Paradigm

A cognitive psychology experiment that demonstrates the creation of false memories through the presentation of lists of semantically related words.