If a Project's Profitability Index Is Less Than 1, Then

question 144

Multiple Choice

If a project's profitability index is less than 1, then

• A) its net present value is zero.
• B) its net present value is positive.
• C) it should be rejected.
• D) its internal rate of return is greater than the discount rate.

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Definitions:

Fair Die

A fair die is a dice designed to have equal likelihoods of landing on any of its faces when thrown.

Events

Occurrences or happenings, especially significant ones within a specified area or context.

Independent

Free from outside control; not depending on another's authority or subject to another's influence.

First Ace

The initial occurrence of an ace in a series of card draws or during a specific card-related activity.