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:

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The process of understanding during the Enlightenment period, emphasizing reason, science, and human rights as the primary sources of legitimacy and authority.

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Rules or norms believed to emanate from a supernatural source, governing moral and ethical behaviors.

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The impact of capitalist economic systems on the organization, values, and social relations in a society.

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Norms and rules that govern behavior within a society, often formalized into legal codes and regulations.