An Investment Has Conventional Cash Flows and a Profitability Index

question 107

Multiple Choice

An investment has conventional cash flows and a profitability index of 1.0.Given this, which one of the following must be true?

• A)The internal rate of return exceeds the required rate of return.
• B)The investment never pays back.
• C)The net present value is equal to zero.
• D)The average accounting return is 1.0.
• E)The net present value is greater than 1.0.

---

Definitions:

Leadership Requirement

Essential skills or qualities needed by individuals to effectively guide, influence, or direct a group towards achieving a common goal.

Interpersonal Conflict Management

The techniques and strategies used to address and resolve personal disagreements or clashes.

Problem-Solving Approach

A methodical process of addressing and finding solutions to complex issues or challenges.

Winner-Take-All Approach

A competitive strategy or situation where the top performer or winner receives all the rewards or benefits.