The Profitability Index Is the Ratio Of

question 56

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:

Rejection Sensitivity

A tendency to expect rejection from others and to become hypersensitive to possible rejection.

Emotional Rejection

The feeling of being denied or dismissed in an emotional or relational context.

Social Acceptance

The degree to which an individual is accepted or approved by a social group or society.

Ingratiation

A psychological technique where an individual attempts to become more appealing to others through flattery or conformity.