A profitability index of .85 for a project means what?
A) The present value of benefits is 85% greater than the project's costs
B) The project's NPV is greater than zero.
C) The project returns 85 cents in present value for each current dollar invested
D) The payback period is less than one year
Correct Answer:
Verified
Q5: A project with a projected 6-year life
Q6: What is in the denominator (bottom part)
Q7: Sayer Tool Co. is considering investing
Q8: If investment projects are "mutually exclusive", what
Q9: A project's profitability index is equal to
Q11: Which of the following has the highest
Q12: What is the Net Present Value
Q13: If the "net cashflow" of an investment
Q14: What is the Internal Rate of
Q15: Which of the following are BOTH a
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