If a Project Has a Net Present Value Equal to Zero,then

question 84

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 be also be equal to zero.

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Definitions:

Conservative Decision

A choice-making process that tends to be cautious, aiming to minimize risk and prioritize safety over gains.

Deindividuation

A psychological state where an individual loses their sense of individual identity and engages in unsocialized or antisocial behaviors, often due to being in a large group.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, which can influence various psychological states and behaviors.

Ingroup Bias

The tendency to favor one's own group, including its members or interests, over those of outsiders or competing groups.