Question
When the profitability index is less than 1 present value of cash flows exceed the investment. IRR becomes less than the cost of capital. NPV
When the profitability index is less than 1
| present value of cash flows exceed the investment. |
| IRR becomes less than the cost of capital. |
| NPV is positive. |
| payback period is also less than 1. |
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
