The profitability index (PI) rule can be best stated as:
A) An investment is acceptable if its PI is greater than one.
B) An investment is acceptable if its PI is less than one.
C) An investment is acceptable if its PI is greater than the internal rate of return (IRR) .
D) An investment is acceptable if its PI is less than the net present value (NPV) .
E) An investment is acceptable if its PI is less than its payback.
Correct Answer:
Verified
Q203: Which capital investment evaluation technique offers the
Q217: Which one of the following statements is
Q218: Which one of the following methods of
Q219: The payback period is defined as the
Q221: An investment's average net income divided by
Q223: Capital budgeting decisions generally:
A) Have long-term effects
Q224: The present value of an investment's future
Q225: The average accounting return (AAR) rule can
Q226: The net present value (NPV) rule can
Q227: The discount rate that makes the net
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents