The Use of a Profitability Index Is Required When Ranking

question 66

Multiple Choice

The use of a profitability index is required when ranking projects for capital rationing under which method?

• A) Internal rate of return method
• B) Payback method
• C) Net present value method
• D) Unadjusted rate of return method

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Definitions:

Negative Reinforcer

A stimulus that, when removed after a behavior, increases the likelihood of that behavior being repeated in the future.

Primary Reinforcer

Any reinforcer that is naturally reinforcing by meeting a basic biological need, such as hunger, thirst, or touch.

Fixed-Ratio Schedule

A fixed-ratio schedule is a type of operant conditioning reinforcement schedule where a response is reinforced only after a specified number of responses.

Variable-Ratio Schedule

A reinforcement schedule in which a response is reinforced after an unpredictable number of responses, leading to high and steady response rates.