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A Project Has a Net Present Value of Zero

Question 71

Multiple Choice

A project has a net present value of zero. Which one of the following best describes this project?


A) The project has a zero percent rate of return. 
B) The project requires no initial cash investment. 
C) The project has no cash flows. 
D) The summation of all of the project's cash flows is zero. 
E) The project's cash inflows equal its cash outflows in current dollar terms. 

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