The Profitability Index Is the Ratio Of

question 104

Multiple Choice

The profitability index is the ratio of:

• A)average net income to average investment.
• B)present value of cash flows to initial investment cost.
• C)net present value of cash flows to internal rate of return.
• D)net present value of cash flows to average accounting return.
• E)internal rate of return to current market interest rate.

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Definitions:

Nervous System

The body’s speedy, electrochemical communication network, consisting of all the nerve cells of the peripheral and central nervous systems.

Distraction

Distraction involves diverting attention away from an unwanted focus, towards a different target to reduce emotional discomfort or to refocus cognitive resources.

Favorite Food

A specific food item that a person prefers over others due to taste, cultural, or personal reasons.

Placebo

A harmless substance with no therapeutic effect, used as a control in testing the efficacy of drugs.