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A project has a net present value of -$500,000. Which one of the following best describes this project? The project has no positive cash flows.

A project has a net present value of -$500,000. Which one of the following best describes this project?

The project has no positive cash flows.
The projects present value of all future cash flows is less than its intital cost.
The project's cash inflows equal its cash outflows in current dollar terms (present value).
The project has a negative required rate of return.

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