The Profitability Index Allows Comparison of the Relative Desirability of Projects

question 29

True/False

The profitability index allows comparison of the relative desirability of projects that require differing initial investments.

---

Definitions:

Coefficient Alpha

A method for evaluating internal consistency, calculated by averaging the intercorrelations of all the items on a given test. The higher the coefficient alpha, the higher the internal consistency.

Structural Abnormalities

Physical changes or anomalies in the body's structures, often identified through medical imaging or physical examination.

Abnormal Behaviour

Patterns of emotion, thought, and action considered pathological (outside the normative range) by society or professional standards.