If a Project Has a Positive Net Present Value (NPV)

question 115

Multiple Choice

If a project has a positive net present value (NPV) , then the profitability index is:

• A) greater than one
• B) less than one
• C) equal to one
• D) negative

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Definitions:

Indirect Component

A factor or variable that contributes to an outcome through its effects on other variables, rather than directly.

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