The Profitability Index Is Most Closely Related to Which One

question 73

Multiple Choice

The profitability index is most closely related to which one of the following?

• A)payback
• B)discounted payback
• C)average accounting return
• D)net present value
• E)modified internal rate of return

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Definitions:

Average Run Length

A statistical measure in quality control indicating the expected number of items to be processed before a change or fault is detected.

Sample Size

The number of observations or data points collected in a sample, used for statistical analysis to make inferences about a larger population.

Assignable Variation

Variation in a process that can be traced to a specific cause, as opposed to random variation.

Malfunctioning Valve

A valve that fails to operate in the intended manner, which can lead to system performance issues or safety hazards.