If a project is acceptable using the NPV criteria,it will also be acceptable when using the profitability index and IRR criteria.

Question

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If a project has a positive NPV, it means that the project is expected to generate value for the company and earn a return that is greater than the cost of capital. The profitability index and IRR criteria also take into account the time value of money and the cost of capital, so if a project has a positive NPV it will also have a positive profitability index and IRR. Therefore, if a project is acceptable using the NPV criteria, it will also be acceptable using the profitability index and IRR criteria.

If a Project Is Acceptable Using the NPV Criteria,it Will