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:

Depressant

A substance that reduces the function or activity of a specific part of the body or brain, commonly used to refer to central nervous system depressants.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, often used recreationally and known for its abuse potential.

Alcohol

A psychoactive substance found in drinks such as beer, wine, and spirits, capable of altering mood and behavior.

Heroin

An opioid drug made from morphine, a natural substance taken from the seed pod of the various opium poppy plants, known for its addictive properties and illegal status in many countries.