1.) Why might the profitability index be preferable over the NPV method when analyzing capital investments?

2.) "All costs (past, present, future, variable and fixed) are relevant when making a decision between two alternatives. Is this true or false? Why or why not?

3.) The current ratio assesses a businesss

a. Liquidity b. Profitability c. Market performance d. None of the above

4.) Which of the following is an example of a cost that is variable with respect to the number of units produced?

a. Salaries of top marketing executives b.Rent on the factory building c. Rent on the corporate office building d.Direct materials used in products