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stranahan stranahan
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7 years ago
Which of the statements below is TRUE?
A) There are two acceptable projects, but we can only take one due to a shortage of funds. The PI for these two projects are: Project A: 2.25; Project B: 1.89. We would take Project B.
B) A PI of 1.50 can be interpreted as meaning that for every $1.00 invested today the firm gets back $1.50 in current dollars.
C) According to the profitability index (PI) decision criterion when the PI is greater than 1, the cost exceed the benefits.
D) If we realize that NPV is the present value of the benefits minus the present value of the costs, then we simply need to subtract the costs to the NPV to get the present value of the benefits.
Textbook 
Financial Management: Core Concepts

Financial Management: Core Concepts


Edition: 2nd
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tokentame78tokentame78
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7 years ago
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stranahan Author
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#2
7 years ago
Thank you for  the help. I had a few questions on a few of them and this really confirmed my answers.
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#3
4 years ago
Yayayayayay Gracis Senor
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