AHIP Exam AHM-520 Topic 4 Question 34 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 34
Topic #: 4

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:

AProposal A, and the PI indicates that the net present value (NPV) for this project is less than zero

BProposal A, and the PI indicates that the net present value (NPV) for this project is greater than zero

CProposal B, and the PI indicates that the net present value (NPV) for this project is less than zero

DProposal B, and the PI indicates that the net present value (NPV) for this project is greater than zero

Show Suggested Answer

Suggested Answer: C

by Lashaunda at May 06, 2022, 01:02 PM

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