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If net present value is positive then profitability index will be...

This question belongs to Commerce Financial Management
Financial Management
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If net present value is positive then profitability index will be

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Correct Answer: Option D
If net present value is positive then profitability index will be greater than one. A positive net present value indicates that the projected earnings generated by a project or investment - in present dollars - exceeds the anticipated costs, also in present dollars. It is assumed that an investment with a positive NPV will be profitable, and an investment with a negative NPV will result in a net loss.
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