If a Project Has a Net Present Value of £0

question 20

Multiple Choice

If a project has a net present value of £0 when a discount rate of 10 per cent is used, what can be concluded about the rate of return of the project?

• A)The rate of return is greater than 10 per cent.
• B)The rate of return is less than 10 per cent.
• C)The rate of return equals 10 per cent.
• D)The rate of return is 0.