Given the following information and assuming a CCA rate of 20%, what is the profitability index of this project? Initial investment = $400,000; life = five years; before-tax cost savings = $150,000 per year; salvage value = $30,000 in year 5; tax rate = 34%; discount rate = 14%.

A) 0.45
B) 0.74
C) 1.07
D) 1.65
E) 1.98

At the start of the year, Gershon, Inc. had total shareholders' equity = $12,000. If net income during the year was a $200 loss, dividends paid = $400, and $1,000 was raised from the sale of new stock, what is the end of year value for total shareholders' equity?

A) $10,060
B) $11,800
C) $12,400
D) $12,800
E) $13,200

In terms of a SWOT analysis,a strength is best defined as something that the firm does ________.

A) better than the competition
B) with consistency
C) really well
D) profitably

In the realm of business ethics,making claims about dietary supplements or the health benefits of certain unproven ingredients is an issue related to:

A) conflict of interest.
B) communications.
C) product design.
D) business relationships.
E) financing.

Construction workers frequently sponsor political lobbying in support of greater public spending on highways and public buildings.One reason for this is to:

A) restrict the supply of construction workers.
B) increase the elasticity of demand for construction workers.
C) increase the demand for construction workers.
D) increase the price of substitute inputs.

________ is a legal doctrine that restricts a party from denying that a promise was made under certain conditions,even though consideration has not been exchanged to bind an agreement.

A) Statutes of limitations
B) Promissory estoppel
C) Locus sigilli
D) Accord and satisfaction