If the NPV of a Project Is Greater Than 0

question 90

Multiple Choice

If the NPV of a project is greater than 0, then its profitability index is:

• A)greater than 1.
• B)greater than 0.
• C)less than 1.
• D)None of the choices.

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Definitions:

Mass Production

The large-scale manufacturing of goods using standardized designs and assembly-line techniques to achieve economies of scale.

Lean Production

A systematic method for waste minimization within a manufacturing system without sacrificing productivity.

Continuous Process Improvement

An ongoing effort to improve products, services, or processes by making incremental changes or implementing major overhauls to improve efficiency and quality.

Self-Directed Work Teams

Groups of employees who are given the autonomy to manage themselves and the work they do, often encompassing planning, execution, and monitoring of their tasks.