An investment is acceptable if the profitability index (Pi) of the investment is: Mutiple Cnoice Greater than the intemal rate of retuin (iRR.. Less than the net present value (NPV) Greater than one. Less than one. Gremer than a pre-speciled rate of return. The crossower point is defined as the discount rote that: Multiple Choice Indicates the point where the IRR equals zefo as IRR mowor in a dowmward direction. Makes the net present values of two projects equal. Causes a project to move from a posilve net present value to a nogative net present value. Causes the net present value of a project to equal zero. Causes the IRR of one project to exiceed the laR of a second project. Analysis using the profitability index: Multiple Choice: Is useful when trying to determine which one of two mutualy exclusive projects should be accepted. Frequenty conficts with the accept and reject decisions generated by the application of the net present value rule. Utilizes the same basic variables as those used in the average accounting return. Produces eesults which fypically are difficult to comprehend or apply. Is useful as a decision tool when investment funds are limited. The present value of an investment's future cash fows divided by its initial cost is the: Multiple Choice Payback period. Profitability index. Internal rate of return. Net present value. Average accounting return. AAR and payback use an arbitrary cutoff number in their decision rules: True or Faise