If a Project Has a Profitability Index Greater Than 1

question 72

Multiple Choice

If a project has a profitability index greater than 1,

• A)the NPV will also be positive.
• B)the internal rate of return (IRR)will be higher than the required rate of return.
• C)the present value of future cash flows will exceed the amount invested in the project.
• D)all of the above.

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