The Profitability Index Is Closely Related To

question 5

Multiple Choice

The profitability index is closely related to:

• A)payback.
• B)discounted payback.
• C)net present value.
• D)average accounting return.
• E)internal rate of return.

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Definitions:

Positively Correlated

A relationship between two variables in which both variables move in the same direction.

Proximity

The physical closeness between people which can influence attraction and relationship formation.

Fundamental Attribution Error

The tendency to give more attention to dispositional factors than is appropriate for a situation.

Mean, Angry Person

An individual who frequently exhibits hostility or irritability towards others without significant provocation.