The Profitability Index Is the Ratio Of

question 56

Multiple Choice

The profitability index is the ratio of:

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

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Definitions:

527s

Political organizations that can raise unlimited funds for political activities provided they do not coordinate directly with a candidate or political party.

501(c)(4)s

A category of nonprofit organizations in the United States that are permitted to engage in some political activities, provided their primary focus is the promotion of social welfare.

Political Advocacy

Activities or campaigns aimed at influencing the decisions within political, economic, and social systems and institutions.

Funds

Financial resources set aside for a specific purpose or project.