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If a Project with Conventional Cash Flows Has a Profitability

Question 3

Multiple Choice

If a project with conventional cash flows has a profitability index of 1.0, the project will:


A) never pay back.
B) have a negative net present value.
C) have a negative internal rate of return.
D) produce more cash inflows than outflows in today's dollars.
E) have an internal rate of return that equals the required return.

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