Which of the Following Is TRUE Regarding the Profitability Index

question 93

Multiple Choice

Which of the following is TRUE regarding the profitability index?

• A)It does not use the net present value (NPV)to assess benefits.
• B)It is very simple to compute.
• C)Attention must be taken when using it to make sure that all of the constrained resource is utilized.
• D)It is unreliable when used for choosing between different projects.
• E)It ignores cash flows after the cutoff

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Definitions:

Skin Torn Off

A severe injury where a portion of the skin is completely removed from the underlying tissues.

Friction

Resistance of one surface to the motion of another surface rubbing over it.

Resistance

Resistance can refer to the opposition to the flow of electric current or the ability of organisms to withstand the effects of an adverse agent, such as antibiotics or pesticides.

Motion

The action or process of moving or being moved, applicable to physical objects, body parts, or even particles.