If a proposal's profitability index is greater than one then the net present value is positive.

Name: If a proposal's profitability index is greater than one then the net present value is positive.
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The profitability index is calculated by dividing the present value of future cash flows by the initial investment. If the profitability index is greater than one, it means the present value of future cash flows exceeds the initial investment, resulting in a positive net present value (NPV).

If a Proposal's Profitability Index Is Greater Than One Then