If the Discount Rate Is 14% and the fiRm Has

question 365

Multiple Choice

If the discount rate is 14% and the firm has limited funds, which of the following is true?

• A) The PI of project A is less than 1.0.
• B) The PI of project B is less than 1.0.
• C) Based on the PI rule, project A is preferable.
• D) Both projects would be rejected based on the PI rule.
• E) The project with the smaller initial investment always has the higher PI.

---

Definitions:

Visual Content

Imagery, videos, or any graphical material used in communication or media.

Textual Content

The written or printed material that forms the main body of a publication or document.

Design Plans

Detailed drawings or plans created to show the look and function of a project before it is built or produced.

Presentation Slides

Visual aids used in presentations to convey information, support speech, and engage the audience, typically created using software like PowerPoint.