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:

Market Revolution

A period of significant change in the United States during the early 19th century, characterized by the rapid expansion of capitalism and the development of a national market economy.

Cooperative Basis

A foundational principle for organizations or enterprises that are owned and run jointly by their members, who share the profits or benefits.

Private Property

The legal right to own, use, and manage property, which is protected by law from unauthorized use by others.

Robert Owen

A 19th-century Welsh social reformer and one of the founders of utopian socialism and the cooperative movement.