An Acceptable Project Should Have a Net Present Value Greater

question 59

True/False

An acceptable project should have a net present value greater than or equal to zero and a profitability index greater than or equal to one.

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Definitions:

Dividends Payable

A financial accounting term referring to the declared dividends to be paid to a corporation's shareholders out of current or retained earnings.

Legal Capital Approach

A method of accounting that maintains capital at a certain legal minimum to protect creditors.

Ownership Equity

The owners' residual interest in the assets of a company after deducting liabilities, also known as shareholders' equity or stockholders' equity.

Date of Record

The specific date set by a corporation on which the company determines the shareholders eligible to receive dividends or other distributions.