The Profitability Index Is Most Closely Related to Which One

question 73

Multiple Choice

The profitability index is most closely related to which one of the following?

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

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Definitions:

Eminent Domain

The right of a government or its agent to expropriate private property for public use, with payment of compensation.

Fairly Compensate

To provide just or appropriate remuneration or settlement for services performed or harm experienced.

Market Value

The current price at which an asset or service can be bought or sold in the open market, reflecting its perceived worth.

Fee Simple Absolute

The most complete ownership of land or property legally possible, allowing the owner unrestricted rights to use, sell, or bequeath the property.