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The Jade Health Plan used a profitability index (PI) to rank the following capital proposals:
Proposal PI
A0.45
B1.05
This information indicates that, of these two projects, Jade would most likely select:
Suggested Answer: C
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11 comments · newest first
BU
Buck
12 months ago
Just to clarify, a PI under 1 means negative NPV, right?
EL
Elly
1 year ago
Not sure about this, seems like B is the only logical option.
KA
Karima
1 year ago
Wait, how can A have a PI of 0.45 and still be considered?
TO
Tomoko
1 year ago
Totally agree, B is the way to go!
AR
Arletta
1 year ago
Proposal B has a PI of 1.05, so it's the clear choice!
LA
Launa
1 year ago
I feel like I might be mixing up the definitions. If Proposal A has a PI of 0.45, does that mean it's definitely a bad choice? I need to think this through more.
PE
Pete
1 year ago
This reminds me of a practice question where we had to choose between two projects based on their PIs. I think we always went for the higher PI, so it must be Proposal B.
HA
Haley
1 year ago
I'm a bit unsure about the NPV implications here. I thought a PI of 0.45 meant the project would have a negative NPV, but I'm not completely confident.
BE
Bettina
1 year ago
I remember that a PI greater than 1 indicates a good investment, so I think Proposal B is the right choice.
GR
Gracie
1 year ago
Okay, let's see. Since the question mentions identity-based authentication, I'm guessing the answer is either Kerberos or SAML. I'll need to weigh the pros and cons of each to determine the most likely option.
PA
Patrick
1 year ago
I'm a little unsure about this one. I know Okta integrates with LDAP, but I'm not totally clear on the specifics of how the groups are brought in.