If an Investment Has a Project Profitability Index of 0

question 1

Multiple Choice

If an investment has a project profitability index of 0.15,then the:

• A)project's internal rate of return is 15%.
• B)discount rate is greater than the project's internal rate of return.
• C)net present value of the project is positive.
• D)the discount rate is 15%.

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Definitions:

Supply-side Shocks

Unexpected events that affect the supply side of the economy, potentially altering the cost of production and leading to changes in prices and output.

Consumer Spending

The total expenditure by households and individuals on goods and services within a country's economy.

Economic Fluctuations

The rise and fall of economic activity relative to the long-term growth trend of the economy; also called business cycles

World Economy

The global network of economic activities, trade, and financial systems that transcend national borders, facilitating international cooperation and competition.