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:

Tone

In psychology, often refers to the general attitude or underlying emotional quality of a communication or environment.

Stimulus Generalization

The tendency for a response that has been conditioned to one stimulus to be elicited by similar, but not identical, stimuli.

Bee Sting

An injury caused by the sting of a bee, injecting venom that can cause pain, swelling, and in some cases, allergic reactions.

Classical Conditioning

A method of learning that happens by associating a stimulus found in nature with one introduced from the environment.