The Present Value Index Indicates The

question 18

Multiple Choice

The present value index indicates the:

• A) time it will take to recover the initial cash outflow of an investment.
• B) additional cash inflows from operating activities.
• C) rate of return per dollar invested in a capital project.
• D) ratio of the net present value of an investment to the initial investment.

---

Definitions:

Sensorimotor Period

The first stage in Piaget's theory of cognitive development, ranging from birth to approximately 2 years of age, where infants learn through sensory experiences and manipulating objects.

World Around Them

The environment and circumstances in which individuals live and interact, encompassing both physical and social aspects.

Secondary Circular Reactions

Repetitive actions in infant development focused on external objects, marking a key phase in the sensorimotor period where the child begins to interact more with their environment.

Primary Circular Reactions

A term from Piaget's theory referring to the first habits and reflexes in infants, where they discover by chance and repeat actions centered on their own body.