How Is the Profitability Index Calculated

question 72

Multiple Choice

How is the profitability index calculated?

• A)The present value of the net cash flows minus the initial investment.
• B)The present value of the net cash flows /plus the initial investment.
• C)The present value of the net cash flows divided by the initial investment.
• D)The initial investment divided by the present value of the net cash flows.

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Definitions:

Work Frustration

The feeling of being upset or annoyed as a result of being unable to achieve one's goals or fulfill expectations in a work environment.

Aggressive Instinct

The innate or inherent impulse towards aggressive behavior, often associated with instincts for survival and competition.

Freud

An Austrian neurologist named Sigmund Freud introduced psychoanalysis, a therapeutic approach aimed at treating mental health issues through discussions between a psychoanalyst and their patient.

Thanatos

A concept in psychoanalytic theory referring to an instinctual drive towards death or self-destruction.