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

question 103

True/False

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

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Definitions:

Market Value Ethics

The ethical considerations surrounding the determination and influence of market value in business and finance.

Corporate Manager

An individual responsible for planning, directing, or overseeing the operations and development of a corporation.

Benefits to Shareholders

Benefits to shareholders refer to the advantages or gains, such as dividends and increase in share value, that shareholders receive from their investment in a company.

Cost to Corporation

The total expenses incurred by a company in the production of goods or services or in its general operations.