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:

Two-tailed Hypothesis Test

A statistical test used to determine if there is a significant difference between the means or proportions of two populations in either direction.

Sample Statistics

Figures that represent or summarize characteristics of a sample drawn from a larger population, including measures like mean, median, and standard deviation.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or parameter estimation.

Independent Populations

Populations in which the members or outcomes of one group do not influence or are not related to the members or outcomes of another group.