Financial Management

1:

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.

 

Answer : C

Explanation :

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Option: A

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