A Project Has a Net Present Value of Zero

question 71

Multiple Choice

A project has a net present value of zero. Which one of the following best describes this project?

• A) The project has a zero percent rate of return. 
• B) The project requires no initial cash investment. 
• C) The project has no cash flows. 
• D) The summation of all of the project's cash flows is zero. 
• E) The project's cash inflows equal its cash outflows in current dollar terms. 

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Definitions:

Survey

A method of gathering information from a sample of people, traditionally by asking questions, to generalize the results from the sample to a larger population.

Data Entry

The process of inputting data into a computer system, database, or documentation platform.

Constructs

Broad concepts or categories used to organize and interpret observations, often fundamental in psychological theories and research.

Psychological Attributes

Characteristics or qualities of an individual's mental life, including cognitive, emotional, and personality traits.