Question
Which one of the following statements would generally be considered as accurate given independent projects with conventional cash flows? The profitability index rule cannot be
Which one of the following statements would generally be considered as accurate given independent projects with conventional cash flows?
The profitability index rule cannot be applied in this situation. | ||
The payback decision rule could override the net present value decision rule should cash availability be limited. | ||
Business practice dictates that independent projects should have three distinct accept indicators before a project is actually implemented. | ||
The internal rate of return decision may contradict the net present value decision. | ||
The projects cannot be accepted unless the profitability index decision ruling is positive. |
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