Question
The Pootin's project requires initial investments of $15M and its NPV is $1M.The project has all positive cash flows and appropriate discount rate is 15%.
The Pootin's project requires initial investments of $15M and its NPV is $1M.The project has all positive cash flows and appropriate discount rate is 15%.
What is true?
I. The profitability index is less than 1.
II. The IRR is less than 15%.
| I only | ||
| II only | ||
| None of the above | ||
| I and II |
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Investments An Introduction
Authors: Herbert B Mayo
11th Edition
1133936520, 9781133936527
