If a Project's Profitability Index Is Greater Than 1, Then

question 42

Multiple Choice

If a project's profitability index is greater than 1, then the

• A) project should always be accepted.
• B) project's net present value is negative.
• C) project's internal rate of return is less than the discount rate.
• D) project should be accepted if funds are available.

---

Definitions:

Inattentional Blindness

A psychological phenomenon where an individual fails to perceive an unexpected stimulus in plain sight due to a lack of attention.

Perceptual Set

A tendency to perceive or notice some aspects of the available sensory data and ignore others, influenced by expectations, experiences, and context.

Feature Analysis

A method in cognitive psychology for understanding how the human mind perceives and processes information by breaking down stimuli into component features.

Attentional Disturbance

A disruption or impairment in the ability to focus, maintain, or shift attention effectively.