The Net Present Value of a Project Is Zero

question 12

Multiple Choice

The net present value of a project is zero.The minimum desired rate of return used to obtain the net present value is 8%.Which of the following statements is TRUE?

• A)The project is desirable if the minimum desired rate of return is 10%.
• B)The project is desirable if the minimum desired rate of return is 6%.
• C)The project is desirable if the minimum desired rate of return is 6% or 10%.
• D)The project is undesirable if the minimum desired rate of return is 6%.

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Definitions:

Available Information

Refers to data that is readily accessible for use in decision-making and operations.

Supplier Development

The process of working with suppliers to improve their performance and capabilities for mutual benefit.

Buying Organization

An entity that purchases goods and services for its use, which can include businesses, government bodies, institutions, and non-profits.

Request for Information (RFI)

is a standard business process whose purpose is to collect written information about the capabilities of various suppliers.