True or false  When the net present value is negative, the present value index will be greater than 1?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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True or false 

When the net present value is negative, the present value index will be greater than 1?

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Net present value:

It is the technique used for analyzing investment in long term capital projects. It is calculated as the difference between the present value of cash inflow and cash outflows.

If NPV is positive accept the project.

If NPV is negative reject the project.

 

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