Which of the Statements Below Is TRUE

question 27

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 cost 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 to 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:

Function Header

The initial part of a function in programming that specifies the name, return type, and parameters of the function.

Function Declarator

A function declarator in programming defines the name, return type, and parameters of a function.

Data Type

A classification identifying one of various types of data, such as integer, float, or string, that determines the possible data values and operations on that data.

Calling Function

A process in which a program requests a service from the software library or another system resource.