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    Contemporary Financial Management Study Set 2
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    Exam 12: Capital Budgeting: Decision Criteria and Real Option Considerations
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    According to the Profitability Index Criterion, a Project Is Acceptable
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According to the Profitability Index Criterion, a Project Is Acceptable

Question 71

Question 71

Multiple Choice

According to the profitability index criterion, a project is acceptable if its profitability index is greater than ____.


A) 1 plus the cost of capital
B) 0
C) or equal to 1
D) 1.1

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