Multiple Choice
The profitability index will be:
A) Greater than 1.0 whenever the net present value is negative.
B) Negative any time the net present value is negative.
C) Less than 1.0 any time the discount rate is less than the IRR.
D) Equal to 1 any time the IRR is less than the discount rate.
E) Greater than 1.0 when the IRR is greater than the discount rate.
Correct Answer:
Verified
Correct Answer:
Verified
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