Which of the Following Statements About the Profitability Index Evaluation

question 20

Multiple Choice

Which of the following statements about the profitability index evaluation technique is true?

• A)When used to compare projects, the profitability index evaluation technique will tend to favor those projects with lower initial investment requirements.
• B)If a project has a profitability index greater than zero, it should be accepted.
• C)It is most useful when evaluating mutually exclusive projects.
• D)All of the above statements are true.

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Definitions:

Technical Summary

A concise overview designed to outline the main technical details and findings of a report, document, or project, aimed at providing easy-to-understand information to a specific audience.

Executive Summary

A brief section of a document that summarizes the main points, often used in business plans and reports.

Letter Of Transmittal

A cover letter for a document that provides the recipient with information about the contents and the purpose of the documents sent.

Logic Tree

is a diagram used to visually organize the hierarchical relationship between different concepts or decisions.