The Major Advantage Provided by the Profitability Index Is It

question 55

Multiple Choice

The major advantage provided by the profitability index is it:

• A) eliminates the need to estimate the firm's cost of capital.
• B) reduces the forecast error of cash flow estimates.
• C) provides a better measure of the effects of a project on shareholder wealth than NPV.
• D) is useful as an aid in raking projects from best to worst.
• E) is easier to calculate than NPV.

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Definitions:

Urine Flow

The act of urination, involving the release of urine from the bladder through the urethra to the outside of the body; problems can indicate health issues.

Pap Test

A screening procedure for cervical cancer involving the collection of cells from the cervix to look for abnormalities that may indicate precancerous or cancerous conditions.

Pelvic Pain

A general term for pain felt in the lower part of the abdomen and pelvis, which can stem from a variety of causes including endometriosis and pelvic inflammatory disease.

Sexual Intercourse

The act of physical sexual activity between individuals, typically involving penetration of the vagina by the penis.