Hale Plumbing Used the Net Present Value Method and Determined

question 201

Multiple Choice

Hale Plumbing used the net present value method and determined that project 34 had a zero net present value. What does this tell management about the project?

• A) The return from this project is equal to the cost of capital.
• B) The project guarantees company profitability.
• C) The project's cash inflows will equal its cash outflows.
• D) The project earns the company's desired minimum rate of return.

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