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.

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Definitions:

Fluid Restriction

A medical directive to limit the amount of fluids consumed by a patient, often used in conditions where fluid balance is critical.

Fluid Volume Excess

A medical condition characterized by too much fluid in the blood, leading to swelling and other potential health issues.

Third Space Syndrome

A shift of body fluid into a space from which it is not easily obtained.

Pulmonary Embolism

A blockage in one of the pulmonary arteries in the lungs, usually caused by blood clots that travel to the lungs from the legs or other parts of the body.