When a Project Has a Positive Net Present Value,it Has

question 38

Multiple Choice

When a project has a positive net present value,it has a profitability index:

• A)greater than zero.
• B)less than zero.
• C)greater than one.
• D)less than one.

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Definitions:

Productive Efficiency

A scenario where goods or services are produced at the lowest possible cost and with maximum efficiency in resource usage.

Nonprice Competition

Strategies companies use to differentiate their product or service based on features, service, quality, or brand image rather than price.

Economic Profits

The net amount remaining when all costs, both obvious and not, are subtracted from the total income.

Differentiated Products

are goods or services that are distinguishable from each other on the basis of quality, features, or branding, leading to non-price competition among firms.