Under What Condition Would You Not Accept a Project That

question 128

Multiple Choice

Under what condition would you not accept a project that has a positive net present value?

• A) If the project has a profitability index less than zero.
• B) If two or more projects are mutually inclusive.
• C) If the firm is limited in the capital it has available (capital rationing).
• D) If a project has more than one sign reversal.