A Project with an NPV of Zero ______________

Multiple Choice

A project with an NPV of zero ______________.

A) Should be rejected.
B) Has a profitability index that is greater than one.
C) Is expected to earn a return equal to the firm's required return.
D) Has a discounted payback period that is shorter than the life of the project.
E) Should be accepted even if the firm has alternative investments with a positive NPV.