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Question 317 - CTFA discussion

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Which of the following statements is correct?

A.
If the NPV of a project is greater than 0, its PI will equal 0
Answers
A.
If the NPV of a project is greater than 0, its PI will equal 0
B.
If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be 0
Answers
B.
If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be 0
C.
If the PI of a project is less than 1, its NPV should be less than 0
Answers
C.
If the PI of a project is less than 1, its NPV should be less than 0
D.
If the IRR of a project is greater than the discount rate, k, its PI will be less than 1 and its NPV will be greater than 0
Answers
D.
If the IRR of a project is greater than the discount rate, k, its PI will be less than 1 and its NPV will be greater than 0
Suggested answer: C
asked 16/09/2024
Ed Quinn
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