Multiple Choice
If the discount rate is 14% and the firm has limited funds, which of the following is true?
A) The PI of project A is less than 1.0.
B) The PI of project B is less than 1.0.
C) Based on the PI rule, project A is preferable.
D) Both projects would be rejected based on the PI rule.
E) The project with the smaller initial investment always has the higher PI.
Correct Answer:
Verified
Correct Answer:
Verified
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