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:

Water-Soluble Vitamin

Vitamins that dissolve in water and are not stored in the body, thus requiring regular intake, such as vitamin C and B vitamins.

Scurvy

A disease resulting from a deficiency of vitamin C, leading to symptoms such as anemia, debility, and gum disease.

Vitamin C

An essential nutrient that acts as an antioxidant, supports the immune system, and is necessary for the synthesis of collagen.

Pulp Cavity

The innermost part of a tooth, containing nerves, blood vessels, and connective tissue.