Use of a Profitability Index to Select Projects in the Absence

question 83

Multiple Choice

Use of a profitability index to select projects in the absence of capital rationing:

• A) will provide the same rankings as an NPV criterion.
• B) will maximize NPV, but not IRR.
• C) can result in misguided selections.
• D)is technically impossible.

---

Definitions:

Copyrightable

Qualifying for copyright protection; typically refers to original works of authorship that are fixed in a tangible medium of expression.

Product Packaging

Refers to the materials and methods used to wrap or protect goods during transport, sale, and use.

Trademark Infringement

The illegal employment of a trademark or service mark with goods and/or services in a way that may result in confusion, deception, or error regarding the origin of the goods and/or services.

Copyright Infringement

The unauthorized use of copyrighted material without permission, violating copyright laws.