An Investment Is Acceptable If the Profitability Index (PI) of the Investment

question 105

Multiple Choice

An investment is acceptable if the profitability index (PI) of the investment is:

• A)greater than one.
• B)less than one.
• C)greater than the internal rate of return (IRR).
• D)less than the net present value (NPV).
• E)greater than a pre-specified rate of return.