A Project with an NPV of Zero ______________

question 191

Multiple Choice

A project with an NPV of zero ______________.

• A) Should be rejected.
• B) Has a profitability index that is greater than one.
• C) Is expected to earn a return equal to the firm's required return.
• D) Has a discounted payback period that is shorter than the life of the project.
• E) Should be accepted even if the firm has alternative investments with a positive NPV.

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