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All of the following statements are true, except
Profitability Index
A financial metric used to evaluate the desirability of an investment or project, calculated as the present value of future cash flows divided by the initial investment cost.
Investment Projects
Initiatives undertaken by businesses or individuals involving the allocation of resources with the expectation of future returns.
Cash Outflows
Money spent or costs incurred by a business or individual, resulting in a decrease in cash reserves.
Straight-Line Depreciation
A manner for spreading out the cost of a tangible asset across its useful life in regular yearly installments.
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