A Project with an NPV of Zero ______________

question 407

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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Definitions:

Culture

The set of social behavior, norms, knowledge, beliefs, arts, laws, and customs that characterize a group of people or society.

Society

A structured community of people bound together by similar traditions, institutions, or nationality.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often at the expense of other cultures.

Cultural Adaptation

The process by which individuals or groups adjust to and integrate with new cultural environments or changes.