A Machine Will Cost $28 000

question 105

Multiple Choice

A machine will cost $28 000. It is estimated that it will generate $8000 in after-tax savings each year during its five-year life. What is the profitability index assuming a hurdle rate of 10 per cent?

• A) 1.08
• B) 0.92
• C) 1.24
• D) 1.43

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Definitions:

Fatal Overdose

An excessive and lethal dose of a substance, typically drugs or medication, leading to death.

Heroin

Is an opioid drug made from morphine, a natural substance taken from the seed pod of various opium poppy plants, highly addictive and illegal.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, known for its potential for addiction and abuse.

LSD

A powerful psychedelic drug known for altering perception, mood, and various cognitive processes.