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:

Globalized New World Order

A concept or perspective on the shifting dynamics of global power, economics, and politics towards increased interconnectedness and homogenization across countries and cultures, often discussed with both positive and negative connotations.

Nation-State

A sovereign entity characterized by a defined territory, permanent population, a government, and the capacity to enter into relations with other states.

Most-Favored Nation Principle

The Most-Favored Nation Principle is a trade policy requiring that a country extends the same trade terms and lowest tariffs it offers to one trading partner to all others.

Uruguay Round Agreements

A collection of treaties, negotiated through the General Agreement on Tariffs and Trade (GATT) that substantially liberalized world trade by reducing tariffs and establishing the World Trade Organization (WTO).