If a Project Has a Negative Net Present Value, Its

question 24

Multiple Choice

If a project has a negative net present value, its profitability index will be

• A) one.
• B) greater than one.
• C) less than one.
• D) undeterminable.

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Definitions:

World Equities

Shares in companies located around the globe, representing ownership across different countries and industries.

Risk-free Rate

The Risk-free Rate is the theoretical return on an investment with no risk of financial loss, typically represented by government bonds.

Future Exchange Rate

An agreed exchange rate for currencies to be exchanged on a predetermined future date, used in futures contracts.

Indifferent Investing

A strategic approach where investors show no preference between similarly risked investments, focusing on diversification rather than selection.