When the Profitability Index Is Less Than 1

question 44

True/False

When the profitability index is less than 1.00 for a project, that project has a positive net present value.

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Definitions:

Prototype

An initial model or release of a product used to test a concept or process, serving as a real-world proof of concept before full-scale production.

Disintermediation

The removal of intermediaries in a supply chain, allowing producers to sell directly to consumers.

Channel Intermediaries

Entities that facilitate the distribution process by moving products from producers to consumers, including wholesalers, retailers, agents, and brokers.

Intensive Distribution

Intensive Distribution is a marketing strategy where a company aims to make its products available in as many outlets as possible, maximizing visibility and accessibility to consumers.