If a Proposal's Profitability Index Is Greater Than One

question 49

Multiple Choice

If a proposal's profitability index is greater than one:

• A) the net present value is negative.
• B) the net present value is positive.
• C) the net present value is zero.
• D) none of these, because the net present value cannot be gauged by the profitability index.
• E) the proposal should be rejected.

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Definitions:

Hemoglobin

Hemoglobin is a protein in red blood cells responsible for transporting oxygen from the lungs to the body's tissues and returning carbon dioxide from the tissues back to the lungs.

Oxygen

A chemical element (O) essential for life, involved in cellular respiration, where it is used to produce energy from the breakdown of molecules like glucose.

Affinity

The degree to which a substance tends to combine with another, often used in the context of biochemical reactions.

Hematocrit

The proportion of blood volume that is occupied by red blood cells, a key measure of blood health.