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Question 315 - CTFA discussion

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A profitability index of .85 for a project means that:

A.
The present value of benefits is 85% greater than the project's costs
Answers
A.
The present value of benefits is 85% greater than the project's costs
B.
The project's NPV is greater than zero
Answers
B.
The project's NPV is greater than zero
C.
The project returns 85 cents in present value for each current dollar invested
Answers
C.
The project returns 85 cents in present value for each current dollar invested
D.
The payback period is less than one year
Answers
D.
The payback period is less than one year
Suggested answer: C
asked 16/09/2024
FB Kalaidji
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