When the Present Value of the Cash Inflows Exceeds the Initial

Multiple Choice

When the present value of the cash inflows exceeds the initial cost of a project, then the project should be:

A) accepted because the internal rate of return is positive.
B) accepted because the profitability index is greater than 1.
C) accepted because the profitability index is negative.
D) rejected because the internal rate of return is negative.
E) rejected because the net present value is negative.