Which of the following statements is incorrect regarding a normal project?
A. If the NPV of a project is greater than 0, then its PI will exceed 1.
B. If the IRR of a project is 8%, its NPV, using a discount rate, k, greater than 8%, will
be less than 0.
C. If the PI of a project equals 0, then the project's initial cash outflow equals the PV
of its cash flows.
D. If the IRR of a project is greater than the discount rate, k, then its PI will be
greater than 1.
A. If the NPV of a project is greater than 0, then its PI will exceed 1.
B. If the IRR of a project is 8%, its NPV, using a discount rate, k, greater than 8%, will
be less than 0.
C. If the PI of a project equals 0, then the project's initial cash outflow equals the PV
of its cash flows.
D. If the IRR of a project is greater than the discount rate, k, then its PI will be
greater than 1.