The Profitability Index

question 104

Multiple Choice

The profitability index

• A) does not take into account the discounted cash flows.
• B) is calculated by dividing total cash flows by the initial investment.
• C) allows comparison of the relative desirability of projects that require differing initial investments.
• D) will never be greater than 1.

---

Definitions:

Gene Therapy

A medical technique that modifies or manipulates genes in an individual's cells to treat or prevent disease.

Allergic

Pertaining to or suffering from allergies, a condition where the immune system reacts abnormally to a foreign substance.

Mutating

The process of undergoing changes in the genetic sequence, leading to variations in the genetic makeup of organisms.

Genetically Engineered Corn

A type of corn that has had its genetic material altered using biotechnology to introduce desirable traits such as pest resistance and increased yield.