Any project with a profitability index below 1.0 should be accepted as this implies that the benefits exceed the costs.

Name: Any project with a profitability index below 1.0 should be accepted as this implies that the benefits exceed the costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A profitability index below 1.0 means that the costs exceed the benefits, so accepting the project in this scenario would result in a net loss. Projects with a profitability index above 1.0 should be accepted as the benefits exceed the costs.

Any Project with a Profitability Index Below 1