Based on the profitability index of _____ for this project, you should _____ the project.
A).97; accept
B)1.05; accept
C)1.18; accept
D).97; reject
E)1.05; reject

Name: Based on the profitability index of _____ for this project, you should _____ the project. A).97; accept B)1.05; accept C)1.18; accept D).97; reject E)1.05; reject
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Question

Quizplus · Accepted Answer

A profitability index greater than 1 indicates that the project's present value of future cash flows exceeds the initial investment, suggesting it is a profitable investment.

Based on the Profitability Index of _____ for This Project