All of the following are useful for understanding Profitability Index, except:

Multiple Choice

A profitability index greater than $1$ equals a positive NPV$.$

A profitability index less than $1$ equals a negative NPV$.$

The initial investment is excluded when calculating the present value of the future cash flows.

The initial investment is included when calculating the present value of the future cash flows.

The denominator for the profitability index is the cost of the project.