If a Proposal's Profitability Index Is Greater Than One

question 49

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) none of these, because the net present value cannot be gauged by the profitability index.
• E) the proposal should be rejected.

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Definitions:

Urethra

A tube that connects the urinary bladder to the urinary meatus for the removal of fluids from the body.

Ureters

Tubes that carry urine from the kidneys to the bladder, playing a crucial role in the urinary system.

Kidneys

Paired organs of the vertebrate urinary system that regulate the chemical composition of the blood and produce a waste product called urine.

Nitrogenous Wastes

Metabolic waste compounds that contain nitrogen, such as urea and ammonia, which are primarily excreted by the kidneys in animals.