If a project has a net present value equal to zero, then:

1. The present value of the cash inflows exceeds the initial cost of the project.
2. The project produces a rate of return that equals the required rate of return.
3. The project will not increase the value of the company.
4. Any delay in receiving the projected cash inflows will cause the project to have a negative net present value.

• 1, 2, and 3 only
• 1, 2, and 4 only
• 2, and 3 only.
• 2, and 4 only.
• 2, 3, and 4 only.