Question 191 NPV, IRR, profitability index, pay back period
A project's Profitability Index (PI) is less than 1. Select the most correct statement:
(a) The project should be rejected.
(b) The project's IRR is more than its required return.
(c) The project's payback period will be less than 3 years.
(d) The project's IRR is equal to its required return.
(e) The project's NPV is greater than 1.