Which of the following statements is not correct if a project's discount rate equals the project'sinternal rate of return?

Question

Quizplus · Accepted Answer

When a project's discount rate equals its internal rate of return (IRR), the net present value (NPV) of the project is zero, which means the present value of cash inflows equals the initial investment cost, making the profitability index exactly 1.0, not zero. The profitability index is calculated as the present value of future cash flows divided by the initial investment, so if NPV is zero, this ratio equals 1, not zero.

Which of the Following Statements Is Not Correct If a Project's