If a Project Is Assigned a Required Rate of Return

question 91

Multiple Choice

If a project is assigned a required rate of return equal to zero,then:

• A) the timing of the project's cash flows has no bearing on the value of the project.
• B) the project will always be accepted.
• C) the project will always be rejected.
• D) whether the project is accepted or rejected will depend on the timing of the cash flows.
• E) the project can never add value for the shareholders.