The Profitability Index of an Investment Project Is the Ratio

question 10

Multiple Choice

The profitability index of an investment project is the ratio of the:

• A)average net income from the project to the average investment cost.
• B)internal rate of return to the current market rate of interest.
• C)net present value of the project's cash outflows divided by the net present value of its inflows.
• D)net present value of every cash flow related to the project compared to the initial cost.
• E)present value of the cash flows subsequent to the initial cost compared to the initial cost.

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Definitions:

Succession Planning

A strategic process to identify and develop new leaders who can replace old leaders when they leave, retire, or die, ensuring continuity in leadership and operations.

Business Continuity

Strategies and plans implemented by a company to ensure that essential business functions can continue during and after a disaster.

High-Potential Leaders

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