Question

If a project has a net present value equal to zero, then: I. the present value of the cash inflows exceeds the initial cost of the project. II. the project produces a rate of return that just equals the rate required to accept the project. III. the project is expected to produce only the minimally required cash inflows. IV. any delay in receiving the projected cash inflows will cause the project to have anegative net present value.

Answer 1

Answer:

ii, iii, iv

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

If the present value of the cash inflows exceeds the initial cost of the project,  NPV is positive

If the present value of the cash inflows is less than the initial cost of the project,  NPV is negative