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.

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Definitions:

ATPs

Adenosine triphosphate molecules, which are the primary energy carriers in all living organisms, providing energy for various cellular processes.

Glucose

Glucose is a simple sugar and an important energy source in living organisms, serving as a primary molecule in cellular respiration and metabolism.

Saturated Fatty Acids

Fat molecules that have no double bonds between carbon atoms because they are saturated with hydrogen atoms, typically found in animal fats and are solid at room temperature.

Unsaturated Fatty Acids

These are types of fatty acids that contain at least one double bond in the hydrocarbon chain which can lead to health benefits when consumed in moderation.