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.

---

Definitions:

Establish Credibility

The process of building trust and believability in one's knowledge, skills, or authority.

Conversational Tone

A style of communication that is informal, friendly, and akin to natural spoken dialogue.

Endorsements

Public declarations of support for a product, service, or individual, often made by a celebrity or recognized authority in a particular field.

Writer's Credibility

The level of trustworthiness, expertise, and authority attributed to an author based on their experience, qualifications, and previous work.