If a Project with Conventional Cash Flows Has a Profitability

question 3

Multiple Choice

If a project with conventional cash flows has a profitability index of 1.0, the project will:

• A)never pay back.
• B)have a negative net present value.
• C)have a negative internal rate of return.
• D)produce more cash inflows than outflows in today's dollars.
• E)have an internal rate of return that equals the required return.

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Definitions:

Interact

To communicate or act together, influencing each other, often in a dynamic and responsive way.

Passively

In a manner that involves acceptance or submission without active response or resistance.

Memo

A written message, especially in a business setting, for communication within an organization.

Voice Mail

A system that allows users to exchange personal voice messages using an electronic system.