Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A project has a net present value of zero. Which one of the following best describes this project? The project has a zero percent rate

A project has a net present value of zero. Which one of the following best describes this project?

  • The project has a zero percent rate of return.
  • The project requires no initial cash investment.
  • The project has no cash flows.
  • The summation of all of the project's cash flows is zero.
  • The project's cash inflows equal its cash outflows in current dollar terms.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Core Concepts

Authors: Raymond M Brooks

3rd edition

133866696, 978-0133866698

More Books

Students also viewed these Finance questions