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:

Sensation-Seeking

A trait defined by the search for experiences and feelings that are varied, novel, complex, and intense.

Hypnotic Responsiveness

The extent to which an individual is likely to experience suggested alterations in perception, sensation, emotion, thought, or behavior during hypnosis.

Cooperation and Trust

Key elements in social interactions and relationships that involve working together towards common goals and believing in the reliability and integrity of others.

Freud's Theory of Humor

Sigmund Freud's theory that humor is a way for individuals to release repressed thoughts and feelings safely.