If a Proposal's Profitability Index Is Greater Than One

question 49

Multiple Choice

If a proposal's profitability index is greater than one:

• A) the net present value is negative.
• B) the net present value is positive.
• C) the net present value is zero.
• D) none of these, because the net present value cannot be gauged by the profitability index.
• E) the proposal should be rejected.

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Definitions:

Inferential Statistics

A branch of statistics that allows for making predictions or inferences about a population based on a sample of data.

Population of Interest

The specific group of individuals, about whom researchers want to draw conclusions, within the scope of a given study or analysis.

Respirations

Respirations refer to the act of breathing, wherein air is inhaled and exhaled from the lungs.

Defense Mechanisms

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and to manage emotional conflict and external stressors.