A Profitability Index Is a Method Of

question 34

Multiple Choice

A profitability index is a method of:

• A) Ranking alternative projects using net present values
• B) Ranking alternative projects using internal rate of return
• C) Screening alternative projects using internal rate of return
• D) Screening alternative projects using net present value

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Definitions:

Fast Food

Quick-service restaurants offering minimal table service and food that is prepared and served very quickly, often packaged for takeout or drive-through service.

Demand Curve

a graphical representation showing the relationship between the price of a good and the quantity of that good consumers are willing to buy.

Cost Functions

Mathematical relationships expressing the cost of production as a function of the quantity of output produced.

Profit-maximizing

A strategy or point where a firm reaches the highest possible profit by balancing its costs and revenues.