Which one of the following indicates that a project is definitely acceptable?
A)Profitability index greater than 1.0
B)Negative net present value
C)Modified internal rate return that is lower than the requirement
D)Zero internal rate of return
E)Positive average accounting return

Question

Quizplus · Accepted Answer

A profitability index greater than 1.0 indicates that the present value of future cash flows is greater than the initial investment, making the project acceptable.

Which One of the Following Indicates That a Project Is