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:

Freight-in

Costs associated with shipping goods into a business, considered a part of inventory costs.

Selling Expenses

Operating expenses directly related to the sale of goods excluding Cost of Goods Sold.

Interest Revenue

Income earned by lending funds or allowing another entity to use your funds, where the borrower pays interest.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, culminating in net profit or loss.