46. A project's profitability index is equal to the ratio of the of a project's future cash flows to the project's .

a) present value; initial cash outlay

b) net present value; initial cash outlay

c) present value; depreciable basis

d) net present value; depreciable basis

47. The discount rate at which two projects have identical is referred to as Fisher's rate of intersection. a) present values

b) net present values

c) IRRs

d) profitability indexes

48. Two mutually exclusive investment proposals have "scale differences" (i.e., the cost of the projects differ). Ranking these projects on the basis of IRR, NPV, and PI methods give contradictory results.

a) will never

b) will always

c) may

d) will generally