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    which one of the following indicates that a project is expected to create value for its owners?

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    Which one of the following indicates that a project is expected to create value for its owners?

    a) Positive net present value b) Internal rate of return that is lesser than the requirement c) Profitability index less than 1.0 d) The payback period is

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    Which one of the following indicates that a project is expected to create value for its owners?

    MMO Admin Leader

    Asked: October 23, 2019

    In: Project Management

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    Voted Oldest Recent MMO Panel Expert

    Added an answer on October 23, 2019 at 9:37 PM

    a) Positive net present value

    b) Internal rate of return that is lesser than the requirement

    c) Profitability index less than 1.0

    d) The payback period is greater than the requirement

    (a) The positive net present value indicates if the project is expected to create value for its owners. NPV or Net Present Value is very crucial because it is used to evaluate the budget and investment plan. A positive net present value indicates the projected earnings that have been generated by a particular investment in a project.

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    Which one of the following indicates that a project is expected to create value for its owners' profitability index less than 1.0 payback period greater than the requirement? a. Positive net present value. b. Positive average accounting rate of return. c

    Answer to: Which one of the following indicates that a project is expected to create value for its owners' profitability index less than 1.0...

    Question:

    Which one of the following indicates that a project is expected to create value for its owners' profitability index less than 1.0 payback period greater than the requirement?

    a. Positive net present value.

    b. Positive average accounting rate of return.

    c. Internal rate of return that is less than the requirement.

    It is the index that gives the idea about project's profitability. When the present value of all cash inflows more than cash outflow than this index goes more than 1 otherwise lesser than 1. Higher the PI, better the project.

    Answer and Explanation: 1

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    View this answer Correct Option: .

    Explanation for the correct answer:

    When the Internal Rate of Return(IRR) is less than the needed IRR, project is not profitable...

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    James 10 month ago
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