An NPV of Zero Implies That an Investment's ____________

question 192

Multiple Choice

An NPV of zero implies that an investment's ____________.

• A) Cost exceeds the present value of its cash inflows.
• B) Cost is equal to the present value of its cash inflows.
• C) IRR is greater than the firm's required rate of return.
• D) Present value of cash inflows are positive.
• E) Present value of cash inflows exceed the investment's cost.

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Definitions:

Hotel Owners

Individuals or corporations who possess legal ownership of a hotel business, responsible for its operational, financial, and strategic management.

Road Trips

Long-distance journeys made by vehicle on roads, often for pleasure and adventure.

Memoranda

Written messages or notes used for internal communication within organizations or between individuals in a professional context.

Secretary

An administrative assistant in an organization who is responsible for handling correspondence, keeping records, and performing clerical duties.