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  3. the profitability index (pi) of a project is 0.9,

The profitability index (PI) of a project is 0.9, and the initial investment (cost) is...

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Accounting

The profitability index (PI) of a project is 0.9, and the initial investment (cost) is $10,000. What do you know about the project's net present value (NPV) and its internal rate of return (IRR)?

Question options:

NPV may be smaller than zero

NPV must be -$1,000

The IRR is the lower than the prevailing discount rate

None of the above

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