If a Company Has Computed a Project Profitability Index of -0.015

question 34

Multiple Choice

If a company has computed a project profitability index of -0.015 for an investment project, then:

• A)the project's internal rate of return is less than the discount rate.
• B)the project's internal rate of return is greater than the discount rate.
• C)the project's internal rate of return is equal to the discount rate.
• D)the relationship of the internal rate of return and the discount rate is impossible to determine from the data given.

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