If a Company Has Computed a Project Profitability Index of -0.015

Multiple Choice

If a company has computed a project profitability index of -0.015 for an investment project, then:

A) the project's internal rate of return is less than the discount rate.
B) the project's internal rate of return is greater than the discount rate.
C) the project's internal rate of return is equal to the discount rate.
D) the relationship of the internal rate of return and the discount rate is impossible to determine from the data given.