A.profitability index less than 1.0B.project's internal rate of return less than the required returnC.discounted payback period greater than requirementD.modified internal rate of return that exceeds the required return 搜索 题目 Which one of the following is a project acceptance indicator given an...
If the PI is less than 1, the project destroys value and the company should not proceed with the project. If the PI is equal to 1, the project breaks even and the company is indifferent between proceeding or not proceeding with the project. The higher the profitability index, the more at...
Profitability index formula: If the index is higher than 1, it’s a green light. The project is likely to generate more money than its cost. If the index is less than 1, the project might not cover its initial costs, so either shelve the project or rework its budget and/or scope. ...
in ratio terms. It is calculated by dividing the present value of cash flows by initial investment of a project. Accept projects with a profitability index greater than 1 and reject those with less than 1. Choose alternatives with higher profitability index...
A profitability index of 1 indicates breaking even, which is an indifferent result for potential investors. If the result is less than 1.0, logic suggests that the investment should be avoided, as the project's costs outweigh the potential profits. If the result is greater than 1.0, investors...
Profitability Index Formula The formula for the PI is as follows: or Therefore: If the PI is greater than 1, the project generates value and the company should proceed with the project. If the PI is less than 1, the project destroys value and the company should not proceed with the proje...
= [ 909.09 + 1652.89 + 3005.26 ] / 10000 = [ 5567.24 ] / 10000 The profitability index for this project is 0.5567 The project should be rejected since its PI is less than 1 Currently 4.70/5 1 2 3 4 5 Rating:4.7/5 (549 votes)...
Profitability Index = $500,000 / $400,000 = 1.25 A Profitability Index greater than 1 indicates a potentially profitable investment, while a value less than 1 suggests a potential loss or lower return. In this example, the PI of 1.25 indicates that the investment is expected to generate posi...
An investment is acceptable if the profitability index (PI) of the investment is:A.greater than one.B.less than one.C.greater than the internal rate of return (IRR).D.less than the net present value (NPV).的答案是什么.用刷刷题APP,拍照搜索答疑.刷刷题(shua
profitability Thesaurus Financial Encyclopedia Wikipedia Related to profitability:Profitability index prof·it·a·ble (prŏf′ĭ-tə-bəl) adj. Yielding profit; advantageous:an investment that was barely profitable. prof′it·a·bil′i·ty,prof′it·a·ble·nessn. ...