The Profitability Index Is Calculated by Dividing the Present Value

question 154

Multiple Choice

The profitability index is calculated by dividing the present value of net cash inflows by

• A)residual value.
• B)initial investment minus residual value.
• C)by the net present value.
• D)initial investment.

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Definitions:

Horney

Refers to Karen Horney, a psychoanalyst known for her theories on neurosis, personality, and interpersonal relationships.

Self-Actualization

A psychological concept referring to the realization and fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Environmental

Relating to the natural world and the impact of human activity on its condition.

Horney

Refers to Karen Horney, a German psychoanalyst who contributed to the development of psychoanalytic social theory.