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If a project has an internal rate of return of 12% and a negative net present value, which of the following statements is TRUE ?

If a project has an internal rate of return of 12% and a negative net present value, which of the following statements is TRUE?

a.

The profitability index is greater than 1.

b.

The profitability index is less than 1.

c.

d.

The profitability index is equal to 1.

None of the above.

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