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

question 67

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.

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Definitions:

Behavior Control

Behavior Control refers to the methods and strategies used to influence or manage an individual's behavior, often through reinforcement, punishment, or environmental modifications.

Emotion Control

The process of managing and regulating one's emotions to adapt to circumstances and achieve more effective responses.

Compulsion

A psychological condition characterized by the urgent need to perform certain behaviors or rituals repetitively, often a symptom of obsessive-compulsive disorder.

Obsession

Persistent and intrusive thoughts or impulses that cause distress or anxiety, often a symptom of obsessive-compulsive disorder (OCD).