For the net present value (NPV)criteria,a project is acceptable if NPV is ________,while for the profitability index a project is acceptable if PI is ________.
A) greater than zero; greater than the required return
B) greater than or equal to zero; greater than zero
C) greater than one; greater than or equal to one
D) greater than or equal to zero; greater than or equal to one

Question

Quizplus · Accepted Answer

For NPV, a project is acceptable if its NPV is greater than or equal to zero, indicating that it is expected to generate at least the required return, covering its cost of capital. For the profitability index (PI), a project is acceptable if PI is greater than or equal to one, meaning the present value of future cash flows is at least equal to the initial investment, indicating profitability.

For the Net Present Value (NPV)criteria,a Project Is Acceptable If