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When the net present value of a project is greater than zero, that ratio will be:
AEqual to minus one
BGreater than one
CLess than one
DEqual to zero
Answer & Solution
Correct answer: B. Greater than one
1. Benefits exceed costs in that case.
2. The ratio compares the two.
3. It will be greater than one.
_Source: OpenStax Principles of Finance 2e, Chapter 16, How Companies Think about Investing._
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