The Profitability Index (PI) Approach ____

question 3

Multiple Choice

The profitability index (PI) approach ____.

• A) fails to directly consider the timing of a project's cash flows
• B) considers only a project's contributions to net income and does not consider cash flow effects
• C) always gives the same accept-reject decisions for independent projects as does NPV and IRR
• D) always gives the same accept-reject decisions for mutually exclusive projects as does NPV and IRR

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Definitions:

Amplitude

The height or strength of a wave signal, which in the context of sound, affects the volume, and in light, influences brightness.

Frequency

In the context of waves, it refers to the number of cycles or vibrations per unit of time, often measured in Hertz (Hz).

Photoreceptors

Cells in the retina of the eye that are sensitive to light and convert it into signals that can lead to visual perception.

Brightly Lit

An environment or area that is well illuminated with light, often used to describe spaces designed to enhance visibility.