If a Project with Conventional Cash flOws Has a Profitability

question 180

Multiple Choice

If a project with conventional cash flows has a profitability index less than one, then:

• A) The IRR is greater than the required return.
• B) The discounted payback period is greater than the project's life.
• C) The AAR is greater than the required return.
• D) The payback period is less than the maximum acceptable period.
• E) The NPV is positive.

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