The Profitability Index of a Proposed Investment Project Will Be

question 78

Multiple Choice

The profitability index of a proposed investment project will be:

• A)equal to 1.0 if the net present value is positive.
• B)negative if the proposed investment meets the cost of capital target.
• C)less than 1.0 if the net present value is negative.
• D)greater than 1.0 if the cost of capital exceeds the internal rate of return.

---

Definitions:

Diagnostic

Related to the identification of diseases or conditions through evaluation of symptoms, signs, and test results.

Antiembolism Stockings

Specialized stockings designed to apply pressure to the legs to promote blood flow and reduce the risk of deep vein thrombosis and other complications.

Sequential Compression Device (SCD)

A medical device used to promote blood flow in the legs by applying intermittent compression, preventing blood clots.

Tonsillectomy

A surgical procedure to remove the tonsils, often performed to treat repeat infections or breathing problems.