Select the Incorrect Statement Concerning the Present Value Index (PVI)

question 61

Multiple Choice

Select the incorrect statement concerning the present value index (PVI) .

• A) The PVI is computed by dividing the total present value of the cash inflows by the present value of the cash outflows.
• B) The PVI should be used to evaluate two or more projects whose initial investments differ.
• C) The lower the PVI, the better.
• D) A project whose PVI is positive will also have a positive net present value.

---

Definitions:

Professionals

Individual engaged in a profession who possess the specialized education, skills, and ethical standards of their field.

Process Innovations

The implementation of new or significantly improved production or delivery methods to enhance efficiency and effectiveness.

Richard Walton

A prominent figure known for his contributions to the field of industrial relations and conflict resolution strategies.

Relative Advantage

The degree to which a new product, service, or idea is perceived as better than the existing standard by potential adopters.