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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