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If a Project Has a Net Present Value Equal to Zero,then

Question 84

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 be also be equal to zero.

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