The Profitability Index Is Most Useful

question 68

Multiple Choice

The profitability index is most useful

• A) when the NPV method and the IRR method give conflicting signals on mutually exclusive projects
• B) in capital rationing situations
• C) when the cash flow pattern is unusual
• D) when project scales are of concern

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Definitions:

Cyclic Alkane

A saturated hydrocarbon in which the carbon atoms are arranged in a ring, with the formula CnH2n.

Energy Conformation

The potential energy associated with the spatial arrangement of atoms within molecules, influencing molecule stability and reaction pathways.

Cyclobutane

A saturated hydrocarbon with the chemical formula C4H8, featuring a ring structure composed of four carbon atoms.

Bond Angles

The angle formed between two bonds originating from the same atom within a molecule.