Which of the Following Best Describes the Profitability Index

question 122

Multiple Choice

Which of the following best describes the profitability index?

• A) An index of projects in order of which has the most net income
• B) The ratio of present value of cash flows to initial investment
• C) The ratio of total cash flows to initial investment
• D) An array of possible investment outcomes at different discount rates

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Definitions:

Treatment Completion

The process of finishing a prescribed course of therapy or medical treatment.

Demographic Characteristics

Attributes of populations that can be measured statistically, such as age, gender, income, education, and ethnicity.

Stage Of Change

A concept from the Transtheoretical Model which describes the phases an individual goes through in the process of altering behavior.

Temptations

Desires or impulses leading individuals to perform actions they may later regret, often in reference to breaking personal or societal rules.