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gulaghasi [49]
3 years ago
5

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

rate of return.The project requires no initial cash investment.The project has no cash flows.The summation of all of the project's cash flows is zero.The project's cash inflows equal its cash outflows in current dollar terms.
Business
1 answer:
yawa3891 [41]3 years ago
3 0

The correct answer is that the project’s cash inflows equal its cash outflows in current dollar terms.

Net Present Value is the present value of future revenues minus the present value of future costs. The term is a measure of profit in relation to the discount rate. A zero NPV means that the investment is expected to earn a rate of return equal to the discount rate.

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The stage in a work-unit activity analysis that focuses on the product, information, or service provided is the output phase, This is further explained below.

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In conclusion, The final deliverable is defined. The method of measuring the output is investigated.

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Answer:

a.

  • The quality of goods available to consumers
  • The costs of air and water pollution
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Explanation:

a. GDP only measures goods that have monetary value so when a good cannot be properly quantified in terms of cash, it is difficult to account for it in GDP. Also, even if the good has monetary value for the Government was unaware of it, they will be unable to use it in the calculation of GDP.

For these reasons, the quality of goods available to consumers, the costs of air and water pollution and the value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government will not be a part of GDP calculation.

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