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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. 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. 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. |
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Answer» c) If the PI of a project is less than 1, its NPV should be less than 0. |
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