An acceptable project should have a net present value greater than or equal to zero and a profitability index greater than or equal to one.

Question

Quizplus · Accepted Answer

A project with a net present value (NPV) greater than or equal to zero indicates that the project's potential return is equal to or higher than its initial investment. A profitability index (PI) greater than or equal to one means that the project's present value of cash inflows is greater than or equal to its present value of cash outflows. These are both criteria for accepting a project.

An Acceptable Project Should Have a Net Present Value Greater