The Profitability Index Will Give the Same Investment Decision As

question 44

Multiple Choice

The profitability index will give the same investment decision as:

• A) the payback period.
• B) the average accounting return.
• C) the net present value.
• D) It can be different from each of these techniques.

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Definitions:

Hire

The action of providing employment to someone; the act of engaging an individual for a job.

Marginal Cost

The additional cost resulting from the production of one more unit of a product or service.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available for everyone to consume, regardless of who pays for them.

Production

The process of creating goods and services from various inputs like labor, land, and capital.