(Ignore Income Taxes in This Problem

question 130

Multiple Choice

(Ignore income taxes in this problem.) The management of Pattee Corporation is considering three investment projects-M, N, and O. Project M would require an investment of $25,000, Project N of $67,000, and Project O of $70,000. The present value of the cash inflows would be $28,750 for Project M, $73,700 for Project N, and $79,100 for Project O.
-The profitability index of investment project N is closest to:

• A)0.10
• B)0.90
• C)0.09
• D)1.10

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Definitions:

Nematocyst

In cnidarians, a capsule that contains a threadlike fiber, the release of which aids in the capture of prey.

Bilateral Development

The process of embryonic development where the organism develops with a symmetrical right and left side.

Radial Development

Growth or expansion that spreads out uniformly in all directions from a central point, often used to describe the growth pattern of cities or tumors.

Stinging Cells

Specialized cells found in some animals, such as jellyfish, that contain a stinging structure used for capturing prey or defense.