General Studies · Capital Budgeting
State whether the following statements are True or False: 1. A project with a negative Net Present Value (NPV) will have a Profitability Index (PI) greater than 1. 2. A Profitability Index less than 1 indicates that the project's NPV is positive.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11 is False and 2 is True
- 21 is True and 2 is False
- 3Both 1 and 2 are False✓
- 4Both 1 and 2 are True
Correct answer
Both 1 and 2 are False
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