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:

Painful Event

An occurrence that causes significant emotional, physical, or psychological distress to an individual.

Shocking Event

An occurrence that is surprising, unsettling, or disturbing to the public or an individual, often leading to widespread reaction or change.

Ethnocentric Bias

The tendency to view other cultures from the perspective of one's own, often leading to misinterpretation or judgment based on one's own cultural standards.

Hawaiian Language

A Polynesian language that is the indigenous language of the Native Hawaiian people and an official language of the State of Hawaii.