The Profitability Index Is the Ratio Of

question 95

Multiple Choice

The profitability index is the ratio of:

• A)average net income to average investment.
• B)internal rate of return to current market interest rate.
• C)net present value of cash flows to internal rate of return.
• D)net present value of cash flows to average accounting return.
• E)present value of cash flows to initial investment cost.

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Definitions:

Task Characteristics

The attributes or features inherent in work-related activities that affect how they are perceived and performed.

Subordinate Effort

The exertion of energy or application of skills by individuals or teams at lower hierarchical levels within an organization, usually directed towards achieving the organization's objectives.

Technical Matters

Issues or aspects that are concerned with the practical, mechanical, or procedural side of a subject, often requiring specialized knowledge or skills.

Staffing

The process of hiring, positioning, and overseeing employees in an organization to ensure that it is adequately staffed with qualified individuals.