If a Proposal's Profitability Index Is Greater Than One

question 70

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)the proposal should always be accepted.
• E)the proposal should always be rejected.

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Definitions:

Standard Deviations

A measure of the amount of variation or dispersion in a set of values, often used to quantify the spread of a probability distribution.

Observations

Observations refer to the act of watching or noticing something or the data collected during this process, usually as part of a study or experiment.

Crude Oil Prices

The cost per barrel of crude oil on the commodities market, which fluctuates due to various factors including supply and demand, geopolitical events, and market speculation.

Median Price

The middle value in a list of prices, where half the prices are higher and half are lower.