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:

Catalyst

A substance that increases the rate of a chemical reaction without being consumed or altered permanently in the process.

Semipermeable Membrane

A type of membrane that allows certain molecules or ions to pass through by diffusion but not others.

Osmotic Pressure

Amount of turgor that prevents osmosis into cytoplasm or other hypertonic fluid.

Receptor-Mediated Endocytosis

A cellular process where specific molecules are ingested into the cell after they bind to receptors on the cell surface.