The Profitability Index (PI) Approach ____

question 3

Multiple Choice

The profitability index (PI) approach ____.

• A) fails to directly consider the timing of a project's cash flows
• B) considers only a project's contributions to net income and does not consider cash flow effects
• C) always gives the same accept-reject decisions for independent projects as does NPV and IRR
• D) always gives the same accept-reject decisions for mutually exclusive projects as does NPV and IRR

---

Definitions:

Personal Liability

The legal responsibility of an individual to cover the loss or damage incurred by their actions, potentially affecting their personal assets.

New Middle Class

A socio-economic group that emerged in industrial societies, characterized by higher education levels, professional occupations, and relatively high income.

Physicians

Medical professionals who diagnose, treat, and help prevent diseases and injuries, typically holding a degree in medicine.