We Calculate the Profitability Index of a Capital-Budgeting Proposal by

question 19

Multiple Choice

We calculate the profitability index of a capital-budgeting proposal by

• A)multiplying the IRR by the cost of capital.
• B)dividing the present value of the annual after-tax cash flows by the cost of capital.
• C)dividing the present value of the annual after-tax cash flows by the cost of the project.
• D)multiplying the cash inflow by the IRR.

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Definitions:

Iron Deficiency

A condition resulting from an insufficient amount of iron in the body, leading to reduced levels of hemoglobin in the blood.

Menarche

The first menstrual cycle, or first menstrual bleeding, in female humans; a significant event in female puberty.

Primary Sexual Organs

The main organs directly involved in human reproduction, which in males include the testes producing sperm, and in females, the ovaries producing eggs.

Reproduction

The biological process by which new individual organisms are produced from their parents, ensuring the continuation of a species.