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If the NPV of a Project Is Zero, Then the Profitability

question 103

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If the NPV of a project is zero, then the profitability index should equal one.


Definitions:

Factors

Numbers or expressions that divide into another number or expression exactly, without leaving a remainder.

Nearest Hundredth

A method of rounding numbers so that they are accurate to two decimal places.

Decimal Place

A position of a number to the right of the decimal point, indicating fractions of 10.

Square Root

The value that, when multiplied by itself, gives the original number, used in mathematics to find an original value.

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