If a Project Has a Net Present Value Equal to Zero

question 93

Multiple Choice

If a project has a net present value equal to zero, then: 

• A) the total of the cash inflows must equal the initial cost of the project. 
• B) the project earns a return exactly equal to the discount rate. 
• C) a decrease in the project's initial cost will cause the project to have a negative NPV. 
• D) any delay in receiving the projected cash inflows will cause the project to have a positive NPV. 
• E) the project's PI must also be equal to zero. 

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