If a Company's Required Rate of Return Is 9%, and in Using

question 121

Multiple Choice

If a company's required rate of return is 9%, and in using the profitability index method, a project's index is greater than 1, this indicates that the project's rate of return is

• A) equal to 9%.
• B) greater than 9%.
• C) less than 9%.
• D) unacceptable for investment purposes.