If 1 the compound rate has been increased and 2 the


1. The decision criterion in the profitability index method of capital budgeting is to accept all projects that have profitability index;

a) less than 1

b) greater than 1

c) less than or equal to 1

d) greater than or equal to 1

2. If (1) the compound rate has been increased and (2) the compounding period has been decreased, what impact would this have on the future value of your deposit?

a) increase, decrease

b) increase, increase

c) decrease, increase

d) decrease, decrease

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Financial Management: If 1 the compound rate has been increased and 2 the
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