If a Project Has a Profitability Index of 1

question 87

Multiple Choice

If a project has a profitability index of 1.20, then the project's internal rate of return is

• A) equal to the discount rate.
• B) less than the discount rate.
• C) greater than the discount rate.
• D) equal to 20%.

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Definitions:

Customer

An individual or entity that purchases goods or services from a business.

Self-assessment

The process by which individuals evaluate their own skills, performance, and qualities, often in a professional context.

Legal Challenges

Refers to obstacles or difficulties that arise in the application, interpretation, and enforcement of laws.

Broad Goals

Wide-ranging objectives that an organization aims to achieve over a long-term period.