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    Foundations of Finance
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    Exam 10: Capital-Budgeting Techniques and Practice
  5. Question
    The Profitability Index Is the Ratio of the Company's Net
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The Profitability Index Is the Ratio of the Company's Net

Question 37

Question 37

True/False

The profitability index is the ratio of the company's net income (or profits)to the initial outlay or cost of a capital budgeting project.

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