Question: or projects with conventional cash flows, if the total future cash flows are less than the initial cost, which of the following is incorrect? The

or projects with conventional cash flows, if the total future cash flows are less than the initial cost, which of the following is incorrect?

The profitability index is always greater than one.

NPV will decrease as the required return increases.

NPV is always negative.

If the initial investment of A is higher than that of B, which of the following is correct?

Project B can generate more future cash flows

Project B has a higher profitability index if the required return is 20%

If A and B are mutually exclusive projects, project A is preferred if the required return is 15%

1 points

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