If a Project's Profitability Index Is Equal to 1, Then

question 22

Multiple Choice

If a project's profitability index is equal to 1, then

• A) its net present value is zero.
• B) its net present value is positive.
• C) it should be rejected.
• D) its internal rate of return is greater than the discount rate.

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Definitions:

Conditioned Response

A response that has been acquired through learning to a stimulus that was once neutral but has been consistently paired with an unconditioned stimulus.

Conditioned Stimulus

A stimulus which initially doesn't elicit a response but, when associated with an unconditioned stimulus, later results in a conditioned response.

Stimulus Generalization

The process in which a response to a specific stimulus becomes associated with other stimuli that are similar, leading to the same response.

Conditioned Stimulus

A stimulus that initially has no effect but becomes able to provoke a specific response through association with an unconditioned stimulus.