a project would be acceptable ifa. the net present value is positiveb.

QUESTION

a project would be acceptable ifa. the net present value is positiveb. the payback is greater than the discounted equivalent annual annunituc. the equivalent annual annunity is greater than or equal to the firms discount rated. the profitability index is greater than the net present value
a) is correct. Profitability Index (PI) = (Net Present Value (NPV) Initial Investment) / Initial Investment If PI > 1, Good Investment If PI < 1, Bad Investment there is a linear relationship... tween NPV and PI. Here it is: - If Profitability Index > 1, NPV is Positive ( ) If Profitability Index < 1, NPV is Negative (-   ANSWER: CLICK REQUEST FOR  AN EXPERT SOLUTION