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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

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

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