How Should a Profitability Index of Zero Be Interpreted

Multiple Choice

How should a profitability index of zero be interpreted?

A) The present value of the cash flows subsequent to the initial cash flow is equal to (−1 × Initial cash flow) .
B) The project has an internal rate of return equal to the discount rate.
C) The project produces a net income of zero for every year of its life.
D) The project's cash flows subsequent to the initial cash flow have a present value of zero.
E) The project also has a net present value of zero.