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

question 42

Multiple Choice

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

• A) project should always be accepted.
• B) project's net present value is negative.
• C) project's internal rate of return is less than the discount rate.
• D) project should be accepted if funds are available.

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Definitions:

Centralized Political Organization

A governmental structure where power and decision-making processes are concentrated in a central location or authority.

Markets

Systems or environments where parties engage in the exchange of goods, services, or information, often regulated by supply and demand.

Pastoral Nomads

Groups of people who move with their herds of domesticated animals from one place to another in search of pasture, practicing a nomadic lifestyle dependent on livestock.

Herds and Crops

The management and cultivation of domesticated animals (herds) and plants (crops) for food, fiber, and other products beneficial to humans.