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.

Understand the role and identification of standard parts in engineering drawings.

Comprehend the significance of part numbers in ordering and identifying parts.

Grasp the concept of quantity and its abbreviation in the context of engineering documentation.

Learn about specific professional societies and their acronyms related to engineering.

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Definitions:

Firm's Profitability

A measure of how effectively a company generates profit from its revenues or investment.

Within Industries

Pertains to activities, competitions, and regulatory considerations occurring inside a specific sector or type of business.

Market Firms

Organizations that operate in a specific market, engaging in the production, distribution, or trading of goods or services.

Small Number

A numeric value that is considered to be significantly less in magnitude compared to typical or average values.