At the Current Discount Rate, the Net Present Value of an 8-Year

Multiple Choice

At the current discount rate, the net present value of an 8-year project is zero.Assuming that the current discount rate and the annual cash flows are unchanged, identify which one of the following statements is true.

A) The project will be desirable if the project's life is increased to 10 years.
B) The project will be desirable if the project's life is reduced to 5 years.
C) The project is equally desirable at 5 and 10 years.
D) The project is equally undesirable at 5 and 10 years.