Which One of the Following Indicates That a Project Is

question 25

Multiple Choice

Which one of the following indicates that a project is definitely acceptable?

• A)Profitability index greater than 1.0
• B)Negative net present value
• C)Modified internal rate return that is lower than the requirement
• D)Zero internal rate of return
• E)Positive average accounting return

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Definitions:

Airfares

The amount charged by airlines for a ticket to travel on an aircraft.

Pension Funds

Investment pools that collect and manage funds contributed by employers and employees for retirement benefits.

Arthur Andersen

A former international accounting firm known for its involvement in the Enron scandal, which led to its downfall and loss of reputation in the accounting industry.

HealthSouth

An American healthcare company known for its operations in facilities offering surgical, diagnostic, rehabilitation, and other healthcare services.