The Profitability Index Can Be Useful In

question 118

Multiple Choice

The profitability index can be useful in:

• A)ranking projects under capital rationing.
• B)mutually exclusive projects.
• C)assessing projects with future cash flows that do not change signs
• D)all of the above.

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Definitions:

Observations

Data collected during an experiment or research that are analyzed to draw conclusions.

Critical Value

A predetermined point on the distribution of a test statistic at which the null hypothesis is rejected if exceeded.

Degrees Of Freedom

The count of distinct values or amounts that can be allocated to a statistical distribution while still adhering to all restrictions.

Linear Regression Model

A statistical method to model the relationship between a dependent variable and one or more independent variables by fitting a linear equation to observed data.