A Project with a Zero Net Present Value Indicates That

question 82

Multiple Choice

A project with a zero net present value indicates that it is

• A) unacceptable.
• B) profitable.
• C) acceptable.
• D) going to have an acceptable cash payback period.

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Definitions:

Income Before Taxes

A company's earnings before tax is deducted, an indicator of financial performance excluding tax expenses.

Cash Sales

Transactions where customers pay for goods or services in cash at the point of sale, resulting in immediate revenue.

Credit Sales

Sales made on credit, allowing customers to purchase goods or services and pay for them at a later date.

Loss from Sale

An unfavorable difference between the selling price of an asset and its book value, leading to a financial loss for the entity.