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A Project with a Net Present Value of Zero Should

question 30

True/False

A project with a net present value of zero should not be accepted.


Definitions:

C + I

A formula component in macroeconomics representing total private consumption (C) plus total private investment (I).

MPS

The marginal propensity to save, which is the fraction of an additional unit of income that is saved rather than spent.

Expected Rate of Profit

The anticipated return on investment, representing the gain or loss compared to the initial investment amount.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.

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