Question

Un "Profitability Index" de .85 significa que el a. NPV es mayor a 0. b. NPV...

Un "Profitability Index" de .85 significa que el

a. NPV es mayor a 0.

b. NPV es menor de 0.

c. NPV = 0.

d. I.R.R. = Costo de Capital.

0 0
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Answer #1

Profitability index = 1+NPV/Initial investment

If NPV < $0, Profitability index will be less than 1. Here, given profitability index is 0.85

Hence, correct option is b. NPV es menor de 0.

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