The Profitability Index Equals the Present Value of Net Cash

question 203

True/False

The profitability index equals the present value of net cash inflows from the investment divided by the cost of the investment.

---

Definitions:

Distribution Center

A specialized facility that focuses on product storage and merchandise distribution, serving as an intermediate point between suppliers and customers.

Dallas

A city in the U.S. state of Texas, known for its cultural activities, historical significance, and economic contributions.

Television Sets

Electronic devices designed to receive broadcast signals and display them as visual images with accompanying sound.

Disinfectants

Disinfectants are chemical agents used to eliminate or reduce harmful microorganisms on surfaces, in water, or in the air, to prevent infection and disease spread.