A Firm Uses the Profitability Index to Select Between Two

question 79

Multiple Choice

A firm uses the profitability index to select between two mutually exclusive investments.If no capital rationing has been imposed, which project should be selected?

• A)select the project with the higher profitability index.
• B)select the project with the lower profitability index.
• C)without capital rationing, both projects can be selected.
• D)without capital rationing, select by NPV method.

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Definitions:

Listening Style

Preferred way of making sense out of spoken messages.

Relational-Oriented

Focused on or concerned with developing and maintaining positive relationships with others.

Listening Style

The habitual pattern or preference an individual has when receiving and processing auditory information.

Emotions

Complex psychological states that involve a subjective experience, a physiological response, and a behavioral or expressive response.