An investment costs $200,000. If the present value (PV) of all the future cash flows is...

An investment costs $200,000. If the present value (PV) of all the future cash flows is $175,000, which of the following statements is correct?

	a.	The project should be rejected since the Profitability Index is less than 1.
	b.	The project should be rejected since the NPV is $25,000.
	c.	The project should be accepted since the Profitability Index is greater than 0
	d.	The project should be rejected since the NPV is -$175,000.

Expert Solution

jeff jeffy answered 1 year ago

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