Which One of the Following Statements Is Correct About a Project

Multiple Choice

Which one of the following statements is correct about a project with an estimated internal rate of return of negative 100 percent?

A) The net present value of the cash inflows is exactly equal to the initial investment in the project.
B) The estimated sales volume is equal to the cash break-even level of sales.
C) The estimated sales volume is equal to the financial break-even level of sales.
D) The payback period is exactly equal to the life of the project.
E) The net present value of the project is equal to zero.