We compute the profitability index of a capital budgeting proposal by
A) multiplying the cash inflow by the internal rate of return.
B) dividing the present value of the annual after-tax cash flows by the cash investment in the
project.
C) multiplying the internal rate of return by the cost of capital.
D) dividing the present value of the annual after-tax cash flows by the cost of capital.
B
Business
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Limited partnerships have both limited partners and general partners
Indicate whether the statement is true or false
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