The Profitability Index Will Be

question 178

Multiple Choice

The profitability index will be:

• A) Greater than 1.0 whenever the net present value is negative.
• B) Negative any time the net present value is negative.
• C) Less than 1.0 any time the discount rate is less than the IRR.
• D) Equal to 1 any time the IRR is less than the discount rate.
• E) Greater than 1.0 when the IRR is greater than the discount rate.

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Definitions:

Mental Age

A measure of an individual's cognitive ability expressed as the age at which an average individual achieves the same ability.

Analytical Intelligence

The ability to analyze, evaluate, judge, or compare and contrast information, often considered a component of general intelligence.

Creative Intelligence

The ability to use imagination and innovation to solve problems, often linked with the capability to see new perspectives.

Robert Sternberg

An American psychologist known for his work on intelligence, creativity, wisdom, and love, including the development of Sternberg's Triangular Model of Love.