If a Project Costing $40,000 Has a Profitability Index of 1.00

question 136

Multiple Choice

If a project costing $40,000 has a profitability index of 1.00 and the discount rate was 8%, then the project's internal rate of return was

• A) less than 8%.
• B) equal to 8%.
• C) greater than 8%.
• D) undeterminable.

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