A. Greater than two
B. Equal to
C. Less than one
D. Greater than one
Related Mcqs:
- If the net present value is positive then the profitability index will be ___________?
A. greater than two
B. equal to
C. less than one
D. greater than one - Net present value, profitability index, payback and discounted payback are methods to______________?
A. Evaluate cash flow
B. Evaluate projects
C. Evaluate budgeting
D. Evaluate equity - The net present value, profitability index, payback and discounted payback are the methods to __________?
A. evaluate cash flow
B. evaluate projects
C. evaluate budgeting
D. evaluate equity - The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be ___________?
A. 0.55
B. 1.82
C. 0.55
D. 0.0182 - The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be ____________?
A. 0.0319
B. 3.19
C. 0.31 times
D. 5450 - Profitability index (PI) rule is to take an investment, if the index exceeds___________?
A. -1
B. 0
C. 1
D. 2 - In capital budgeting, positive net present value results in_________________?
A. Negative economic value added
B. Positive economic value added
C. Zero economic value added
D. Percent economic value added - In capital budgeting, the positive net present value results in _________?
A. negative economic value added
B. positive economic value added
C. zero economic value added
D. percent economic value added - Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as____________?
A. Valued relationship
B. Economic relationship
C. Direct relationship
D. Inverse relationship - Profitability index in capital budgeting is used for_________?
A. Negative projects
B. Relative projects
C. Evaluate projects
D. Earned projects
