If the Net Present Value of a Project Is Zero,then

question 66

True/False

If the net present value of a project is zero,then the profitability index will equal one.

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Definitions:

Voluntarily Pay

Refers to making a payment or contribution freely without coercion, typically in contexts where payments are not legally mandated.

Marginal Cost

The incremental cost of producing an extra unit of a good or service.

Rivalry

(1) The characteristic of a private good, the consumption of which by one party excludes other parties from obtaining the benefit; (2) the attempt by one firm to gain strategic advantage over another firm to enhance market share or profit.

Excludability

The characteristic of a private good, for which the seller can keep nonbuyers from obtaining the good.