Multiple Choice
An NPV of zero implies that an investment's ____________.
A) Cost exceeds the present value of its cash inflows.
B) Cost is equal to the present value of its cash inflows.
C) IRR is greater than the firm's required rate of return.
D) Present value of cash inflows are positive.
E) Present value of cash inflows exceed the investment's cost.
Correct Answer:

Verified
Correct Answer:
Verified
Q187: You are considering two independent projects with
Q188: In actual practice, managers frequently use the
Q189: The present value of an investment's future
Q190: Suppose a project costs $300 and produces
Q191: A project with an NPV of zero
Q193: The following four-year project has an initial
Q194: Which of the following can cause a
Q195: The internal rate of return will tell
Q196: IRR uses an arbitrary cutoff number in
Q197: The average accounting rate of return is