Which of the Statements Below Is TRUE

question 86

Multiple Choice

Which of the statements below is TRUE?

• A)According to the profitability index (PI)decision criterion when the PI is greater than 1,the costs exceed the benefits.
• B)If we realize that NPV is the present value of the benefits minus the present value of the costs,then we simply need to subtract the costs from the NPV to get the present value of the benefits.
• C)There are two acceptable projects,but we can only take one due to a shortage of funds.The PI for these two projects are: Project A: 2.25; Project B: 1.89.We would take Project B.
• D)A PI of 1.50 can be interpreted as meaning that for every $1.00 invested today the firm gets back $1.50 in current dollars.

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Definitions:

Savior Complex

A psychological construct where an individual believes they are responsible for saving others, often at the expense of their own needs.

Discounting

In psychology, a cognitive bias where an individual minimizes the significance or worth of an event or object.

Mutual Appreciation

A reciprocal recognition and respect for the value and qualities of another person or group.

Preschool Teachers

Educators specialized in early childhood development who instruct and care for children aged three to five years old.