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CTFA · Question #289
CTFA Question #289: Real Exam Question with Answer & Explanation
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Question
A profitability index of .85 for a project means that:
Options
- AThe present value of benefits is 85% greater than the project's costs
- BThe project's NPV is greater than zero
- CThe project returns 85 cents in present value for each current dollar invested
- DThe payback period is less than one year
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