A Firm Uses the Profitability Index to Select Between Two

question 79

Multiple Choice

A firm uses the profitability index to select between two mutually exclusive investments.If no capital rationing has been imposed, which project should be selected?

• A)select the project with the higher profitability index.
• B)select the project with the lower profitability index.
• C)without capital rationing, both projects can be selected.
• D)without capital rationing, select by NPV method.

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Definitions:

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Ammunition specifically designed for use in rifles, typically consisting of a case, primer, propellant, and a bullet.

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A period of colonial expansion by European powers, the United States, and Japan during the late 19th and early 20th centuries.

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A fervent form of nationalism that promotes a nation's interests above all others, often leading to conflict, expansionism, or militarism.

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A British businessman and imperialist advocate instrumental in British colonization of Southern Africa and the founder of the diamond company De Beers.