The firm should accept independent projects if theprofitability indexis greater than 1.0 (Option B).The profitability index is a ratio that measures the value created per unit ofinvestment. It is calculated by dividing the present value of cash inflows by the initial investment. A profitability index greater than 1.0 indicates that the project's present value of cash inflows is higher than the initial investment, indicating a positive net value.Option A, which states that thepaybackis less than the internal rate of return (IRR), is not a universally accepted criterion for project acceptance. The payback period only considers the time it takes to recover the initial investment, without considering the profitability of the project over its entire life.Option C, stating that theIRRis positive, is a general guideline for project acceptance, as a positive IRR indicates that the project's rate of return exceeds the cost of capital. However, it does not take into account the scale of the investment or the value created.Option D, stating that thenet present value(NPV) is greater than the discounted payback, is not a commonly used criterion for project acceptance. The NPV is a measure of the project's profitability, taking into account the time value of money, while the discounted payback only considers the time it takes to recover the initial investment.In summary, the profitability index (Option B) is the most appropriate criterion among the given options for accepting independent projects, as it considers the value created relative to the investment made.learn more aboutprofitability indexbrainly.com/question/30641835#SPJ11...

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