+3 votes
in Social Science by kratos

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

a) the present value of benefits is 85% greater than the project'* costs.

b) the project'* NPV is greater than zero.

c) the project returns 85 cents in present value for each current dollar invested.

d) the payback ** is less than one year.

1 Answer

+1 vote
by kratos
 
Best answer

c) the project returns 85 cents in present value for each current dollar invested.

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