Which One of the Following Will Occur When the Internal

Multiple Choice

Which one of the following will occur when the internal rate of return equals the required return?

A) The average accounting return will equal 1.0.
B) The profitability index will equal 1.0.
C) The profitability index will equal 0.
D) The net present value will equal the initial cash outflow.
E) The profitability index will equal the average accounting return.