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AHIP Exam AHM-520 Topic 5 Question 91 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 91
Topic #: 5
[All AHM-520 Questions]

The Jade Health Plan used a profitability index (PI) to rank the following capital proposals:

Proposal PI

A 0.45

B 1.05

This information indicates that, of these two projects, Jade would most likely select:

Show Suggested Answer Hide Answer
Suggested Answer: C

by Stephanie at Jul 02, 2024, 08:19 AM

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Crista
8 months ago
I think Rosina is right. Proposal B is the better choice based on the PI.
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Rosina
8 months ago
I'm not sure. Shouldn't we choose Proposal B since it has a PI greater than 1?
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Maile
8 months ago
Proposal B is the clear winner here. With a PI of 1.05, it's a no-brainer. I just hope the Jade Health Plan doesn't forget to factor in the cost of replacing the accountant's calculator after all the high-fiving.
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Melvin
8 months ago
Yeah, that's a pretty clear choice. Hopefully they consider all the costs involved.
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Bernardine
8 months ago
Proposal B is definitely the way to go with a PI of 1.05.
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Cruz
9 months ago
I agree with Bette. Proposal A has a PI less than 1, so its NPV is negative.
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Stephen
9 months ago
Option D all the way, baby! Jade's gonna be rolling in the dough with that high-flying Proposal B. Although, I do wonder if they'll be hiring any court jesters to celebrate the occasion.
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Shaun
9 months ago
Hmm, the PI values don't lie. Proposal B is the way to go, no doubt. I can already smell the profit in the air!
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Tyra
8 months ago
Yeah, Proposal B definitely looks more promising for profitability.
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Nana
8 months ago
I agree, Proposal B seems like the better choice with a PI of 1.05.
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Herschel
9 months ago
Ah, the age-old question of profitability index and NPV. I'd go with option D - Proposal B, where the PI indicates the NPV is greater than zero. Seems like the most logical choice.
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Ettie
9 months ago
Yeah, Proposal B with a PI greater than zero is the way to go.
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Christiane
9 months ago
I agree with you, option D seems like the best choice.
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Bette
9 months ago
I think the answer is B.
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