Multiple Choice
If a project has a net present value equal to zero, then:
A) the total of the cash inflows must equal the initial cost of the project.
B) the project earns a return exactly equal to the discount rate.
C) a decrease in the project's initial cost will cause the project to have a negative NPV.
D) any delay in receiving the projected cash inflows will cause the project to have a positive NPV.
E) the project's PI must also be equal to zero.
Correct Answer:

Verified
Correct Answer:
Verified
Q88: Assume a project is independent with financing
Q89: A firm evaluates all of its projects
Q90: Which one of the following statements related
Q91: The Square Box is considering two independent
Q92: A project has projected cash flows of
Q94: Two mutually exclusive projects have an initial
Q95: The profitability index is most closely related
Q96: Which one of the following is the
Q97: Crystal Industries is considering an expansion project
Q98: The length of time a firm must