Select the Incorrect Statement Concerning the Present Value Index (PVI)

Multiple Choice

Select the incorrect statement concerning the present value index (PVI) .

A) The PVI is computed by dividing the total present value of the cash inflows by the present value of the cash outflows.
B) The PVI should be used to evaluate two or more projects whose initial investments differ.
C) The lower the PVI, the better.
D) A project whose PVI is positive will also have a positive net present value.