As a general rule, if using the Profitability Index as a guide to accept/reject a project,...

	As a general rule, if using the Profitability Index as a guide to accept/reject a project,
	you should accept the project if the Profitability Index is

a	equal to 0
b	greater than 0
c	greater than 1
d	greater than the IRR

Solutions

Expert Solution

Profitability Index = Present value of cash Inflows/Present value of cash outflows

You should accept the Project if Profitability Index is greater than 1.

Answer C

jeff jeffy answered 1 year ago

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