Roger's Meat Market is considering two independent projects. The profitability index decision rule indicates that both projects

Roger's Meat Market is considering two independent projects. The profitability index decision rule indicates that both projects should be accepted. This result most likely does which one of the following?    A.  conflicts with the results of the net present value decision rule B.  assumes the firm has sufficient funds to undertake both projects C.  agrees with the decision that would also apply if the projects were mutually exclusive D.  bases the accept/reject decision on the same variables as the average accounting return E.  fails to provide useful information as the firm must reject at least one of the projects Refer to section 9.6

42.	Which one of the following methods of analysis provides the best information on the cost-benefit aspects of a project?    A.  net present value B.  payback C.  internal rate of return D.  average accounting return E.  profitability index Refer to section 9.6

43.

When the present value of the cash inflows exceeds the initial cost of a project, then the project should be:    A.  accepted because the internal rate of return is positive. B.  accepted because the profitability index is greater than 1. C.  accepted because the profitability index is negative. D.  rejected because the internal rate of return is negative. E.  rejected because the net present value is negative. Refer to section 9.6