Capital Rationing

question 70

Multiple Choice

Capital rationing. The profitability index for a project is 1.18. If the project will produce cash inflows of $60,000 for the next 12 years, what is the initial outlay for the project if the appropriate discount rate is 5 per cent? (Round to the nearest $10.)

• A) $450,670
• B) $627,520
• C) $1,016,950
• D) none of the above

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Definitions:

Cool to the Touch

A description of an object's temperature feeling lower than the surrounding environment when touched.

Remove

To take away or eliminate something, which can include a medical procedure for taking out a foreign object or diseased tissue from the body.

Restrained

The condition of being physically restricted or limited in movement, often for safety or medical reasons.

Nurse

A healthcare professional trained to care for people who are sick or injured and to support health maintenance and recovery.