If a Project Has a Profitability Index of 1

question 87

Multiple Choice

If a project has a profitability index of 1.20, then the project's internal rate of return is

• A) equal to the discount rate.
• B) less than the discount rate.
• C) greater than the discount rate.
• D) equal to 20%.

---

Definitions:

Motion Studies

The systematic study of the human motions used in work activities, aimed at improving efficiency and productivity by reducing unnecessary movements.

Frank and Lillian Gilbreth

Pioneers in the field of industrial engineering, known for their studies in time and motion, and for improving workplace efficiency and productivity.

Incentive Wage Plans

Compensation systems that link a portion of employees' pay to their performance or productivity, aiming to motivate higher levels of output or quality.

Unity of Command Principle

A management principle stating that each employee should report to only one manager, to avoid confusion and conflict in instructions and authority.