Please answer , If a project\'s profitability index is equal to 1, then (a)its n

Question

Please answer ,

If a project's profitability index is equal to 1, then

(a)its net present value is zero

(b)its net present value is positive

(c)it should be rejected

(d)its internal rate of return is greater than the discount rate.

2 .If a project has a negative present valvue,its profitability index will be   

a.greater than one

b.less than one

c.one

d.undeteminable

3.If a project has a profitability index of 1.20, then the project's internal rate of return is

a.equal to the discount rate

b.less than the discount rate

c.equal to 20%

d.greater than the discount rate

Explanation / Answer

1)If a project's profitability index is equal to 1, then

Ans:-(a)its net present value is zero

..

2).If a project has a negative present valvue,its profitability index will be

Ans:-b.less than one

..

3.If a project has a profitability index of 1.20, then the project's internal rate of return is

d.greater than the discount rate

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