If a Project's Profitability Index Is Equal to 1, Then

question 22

Multiple Choice

If a project's profitability index is equal to 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:

Civil Liberties

Fundamental rights and freedoms that are protected from infringement by the government, such as freedom of speech, privacy, and equal rights.

Espionage Act

A United States federal law passed in 1917 that was aimed at preventing interference with military operations, supporting enemy nations, and promoting insubordination in the military.

First Amendment

An amendment to the United States Constitution that guarantees freedoms concerning religion, expression, assembly, and the right to petition.

American Civil Liberties Union

Organization founded during World War Ⅰ to protest the suppression of freedom of expression in wartime; played a major role in court cases that achieved judicial recognition of Americans’ civil liberties.