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:

Shelter

A place providing temporary or permanent protection and accommodation, especially for people in immediate need or distress.

Theories

Systematic sets of ideas or principles designed to explain certain phenomena or observed facts.

Marriage

A legally recognized union between two individuals in personal relationship, typically signifying cultural, religious, or social bonds.

Family

A group made up of parents and their children, regarded as a unit, regardless of whether they live together.