A project with conventional cash flows has a profitability index equal to 0.9 if r is 12%. As a result of the PI you also can be certain that the projects I. IRR < 12% II. NPV < 0 at r = 12% III. AAR > 100%

a.

I and II only

b.

II and III only

c.

I, II and III

d.

II only

e.

I only