If a Project Is Assigned a Required Rate of Return

Multiple Choice

If a project is assigned a required rate of return equal to zero, then:

A) The timing of the project's cash flows has no bearing on the value of the project.
B) The project will always be accepted.
C) The project will always be rejected.
D) Whether the project is accepted or rejected will depend on the timing of the cash flows.
E) The project can never add value for the shareholders.