The Profitability Index Is

question 85

Multiple Choice

The profitability index is

• A)the ratio of net cash flows to the original investment.
• B)the ratio of the present value of cash flows to the original investment.
• C)a capital budgeting evaluation technique that doesn't use discounted values.
• D)a mandatory technique when capital rationing is used.

---

Definitions:

Pupil

The black circular opening in the center of the iris of the eye, through which light enters the eye to reach the retina.

Blepharoptosis

The drooping or falling of the upper eyelid, which can be due to various causes including muscle weakness, nerve damage, or congenital conditions.

Eyelids

Foldable covers that protect the eye, consisting of an upper and a lower flap, and capable of blinking.

Drooping

Sagging or hanging down loosely, often used to describe parts of the body, plants, or objects.