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AHIP AHM-520 Exam - Topic 2 Question 68 Discussion

The Jade Health Plan used a profitability index (PI) to rank the following capital proposals:Proposal PIA0.45B1.05This information indicates that, of these two projects, Jade would most likely select:
C) Proposal B, and the PI indicates that the net present value (NPV) for this project is less than zero
A) Proposal A, and the PI indicates that the net present value (NPV) for this project is less than zero
B) Proposal A, and the PI indicates that the net present value (NPV) for this project is greater than zero
D) Proposal B, and the PI indicates that the net present value (NPV) for this project is greater than zero

AHIP AHM-520 Exam - Topic 2 Question 68 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 68
Topic #: 2
[All AHM-520 Questions]

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:

Show Suggested Answer Hide Answer
Suggested Answer: C

by Sue at Mar 29, 2023, 07:02 AM

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Buck
9 months ago
Just to clarify, a PI under 1 means negative NPV, right?
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Elly
9 months ago
Not sure about this, seems like B is the only logical option.
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Karima
9 months ago
Wait, how can A have a PI of 0.45 and still be considered?
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Tomoko
10 months ago
Totally agree, B is the way to go!
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Arletta
10 months ago
Proposal B has a PI of 1.05, so it's the clear choice!
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Launa
10 months 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.
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Pete
10 months 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.
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Haley
10 months 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.
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Bettina
10 months ago
I remember that a PI greater than 1 indicates a good investment, so I think Proposal B is the right choice.
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Gracie
10 months 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.
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Patrick
10 months 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.
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