Hard Accounting Question Please Help?

If an investment has a project profitability index of 0.15, then the:
A. discount rate is greater than the project’s internal rate of return.
B. project’s internal rate of return is 15%.
C. the discount rate is 15%.
D. net present value of the project is positive.

Both comments and pings are currently closed.

One Response to “Hard Accounting Question Please Help?”

  1. JKRB says:

    If an investment has a project profitability index of 0.15, then the:
    A. discount rate is greater than the project’s internal rate of return.
    If the profitability index is less than one, it means the PV of the future cash flows is less than the original investment. This would mean the internal rate of return is less than zero and the discount rate would be greater than that.

Powered by WordPress | Designed by: free css template | Thanks to hostgator coupon and web hosting reviews