Question
Brian is considering opening a McDonalds in Mumbai. His advisors believe the project has a net present value of zero. Which one of the following
Brian is considering opening a McDonalds in Mumbai. His advisors believe the project has a net present value of zero. Which one of the following must be true? The project has no cash flows. The project has a zero percent rate of return. The project's expected cash inflows equal its cash outflows in current (present value) dollar terms. The summation of all of the project's cash flows is zero. The project requires no initial cash investment.
Widgets-R-Us Inc.'s expansion into the Starkville widget market has an initial cost of $928,400. The market value of expanding is $1,339,060. The difference between these two values is called: |
Payback value. |
Differential Net Present Value. |
Profitability index. |
Net present value. |
Initial Expansion Return. |
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