If a Project Has a Positive Net Present Value, Its

question 98

Multiple Choice

If a project has a positive net present value, its profitability index will be

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

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Definitions:

Equitable Warranties

Legal promises implied by law that ensure fairness and the truthful disclosure of important information typically in property transactions.

Due-on-sale Warranties

Clauses within a mortgage agreement that require the full loan amount to be repaid if the property is sold.

Express Warranties

Explicit promises made by a seller about the quality, condition, or performance of goods being sold.

Implied Warranties

Unspoken and unwritten guarantees assumed by law that the product or service offered for sale meets certain standards of quality and reliability.