The Profitability Index Is Calculated by Dividing the

question 51

Multiple Choice

The profitability index is calculated by dividing the

• A)total cash flows by the initial investment.
• B)present value of cash flows by the initial investment.
• C)initial investment by the total cash flows.
• D)initial investment by the present value of cash flows.

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Definitions:

Single Payer

A healthcare finance mechanism where a single public or quasi-public agency organizes health care financing, but delivery of care remains largely in private hands.

Budget Deficit

A situation where a government's expenditures surpass its revenues within a specific fiscal period, leading to borrowing or debt accumulation.

Price Floor

A legally established minimum price that can be charged for a good or service, typically above the equilibrium price, to prevent market prices from falling too low.

Subsidy

A financial grant or support extended by the government to individuals, businesses, or industries to encourage certain activities or lower their costs.