Multiple Choice
The profitability index is the ratio of:
A) average net income to average investment.
B) internal rate of return to current market interest rate.
C) net present value of cash flows to internal rate of return.
D) net present value of cash flows to average accounting return.
E) present value of cash flows to initial investment cost.
Correct Answer:

Verified
Correct Answer:
Verified
Q47: The discounted payback rule states that you
Q48: The Ziggy Trim and Cut Company can
Q49: A project will have more than one
Q50: You have a choice between two projects,
Q51: The Walker Landscaping Company can purchase a
Q52: Suppose that a project has a cash
Q54: Cutler Compacts will generate cash flows of
Q55: If a project is assigned a required
Q96: A project has an initial cost of
Q102: The two fatal flaws of the internal