Which of the Following Statements Regarding the Profitability Index Is

question 64

Multiple Choice

Which of the following statements regarding the profitability index is true?

• A) A profitability index greater than 1.0 means that the investment will take longer than one year to pay for itself.
• B) A profitability index greater than 1.0 means that the investment should not be made.
• C) When comparing projects, the one with the highest profitability index will have a longer payback period.
• D) When comparing projects, the one with the highest profitability index is preferred.

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Definitions:

Value-Clarifying Skills

The ability to help individuals identify and understand their values and morals to make better decisions.

Political Stream

Refers to one of the streams in John Kingdon's Multiple Streams Framework, focusing on the mood, public opinion, and political discourse that can influence policy agendas.

Protests

Public demonstrations of objection, disapproval, or dissent towards policies, actions, or situations.

Policy Officials

Individuals holding positions within government or organizations who are responsible for creating, implementing, or advising on public policy.