A Project Profitability Index Greater Than Zero for a Project

question 134

Multiple Choice

A project profitability index greater than zero for a project indicates that:

• A) the discount rate is less than the internal rate of return.
• B) there has been a calculation error.
• C) the project is unattractive and should not be pursued.
• D) the company should reevaluate its discount rate.

---

Definitions:

Financial Problems

Issues related to managing money, including difficulties in generating income, managing expenses, or meeting financial obligations.

Benchmark Analysis

A method of comparing business processes and performance metrics to industry bests or best practices from other industries.

Industry Averages

Statistical benchmarks aggregating performance metrics, such as revenue or profits, across companies within a specific industry.

Competitors

Individuals or entities that compete within the same industry or market, offering similar or alternative products or services to the same customer base.