If a Project's Profitability Index Is Less Than 1,the Project's

question 3

Multiple Choice

If a project's profitability index is less than 1,the project's

• A)discount rate is above its cost of capital.
• B)internal rate of return is less than zero.
• C)payback period is infinite.
• D)net present value is negative.

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Definitions:

Group Polarization

The effect where the dominant opinions or convictions of a group intensify or become more radical after discussions among its members.

Deindividuation

A psychological state where an individual loses self-awareness and a sense of individuality, often in group contexts, leading to uninhibited behavior.

Social Facilitation

The tendency for people to perform differently when in the presence of others, usually improving on simple tasks and doing poorly on complex tasks.

Dispositional Attribution

The tendency to attribute someone's behavior to their inherent personality traits rather than to the situations they are in.