The Decision Rule for the Profitability Index Is That Any

question 41

Multiple Choice

The decision rule for the profitability index is that any project with ________ is an acceptable project.

• A)a ratio less than one
• B)a ratio greater than one
• C)a ratio greater than zero
• D)a ratio less than zero

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Definitions:

Exert Pressure

Applying force or influence to achieve a specific outcome or change.

Old Price

Refers to the price level of a good or service in the past, before any adjustments like inflation, discounts, or changes in market conditions.

Surplus

An excess of production or supply over demand, often leading to lower prices.

Shortage

A market condition where the demand for a good or service exceeds its supply at a particular price.