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:

Massachusetts

A state in the northeastern United States, known for its significant colonial history, its role in the American Revolutionary War, and as the home of Harvard University.

Phillis Wheatley

The first African American woman to publish a book of poetry, hailing from the 18th century, recognized for her literary contributions despite being enslaved.

Poetry

A form of literature utilizing aesthetic and rhythmic qualities of language to evoke meanings beyond prose's literal interpretation.

White Virginians

Refers to the Caucasian inhabitants of Virginia, especially significant in historical contexts relating to their roles in the colonial, antebellum, and Civil War periods of the United States.