The Profitability Index Would Be ____ If the Present Value

question 6

Multiple Choice

The profitability index would be ____ if the present value of the net cash flows (NCF) over the life of a project were ____.

• A) negative; less than zero
• B) negative; less than the net investment
• C) zero; equal to the net investment
• D) None of these are correct

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Definitions:

Toxic Chemical

A substance that can cause harm to organisms through chemical reactions or other actions on the molecular scale, often dangerous to human health and the environment.

Exposure Levels

The degrees or amount of exposure to a particular substance, condition, or agent that an organism or ecological system experiences.

Toxins

Harmful substances produced by living organisms, including plants, animals, fungi, and bacteria, that can cause disease or damage when absorbed or ingested by others.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.