2 years ago

If a project has a net present value equal to zero, then:_______.

Business

1 answer:

Galina-37 [17]2 years ago

5 0

Answer: D. II, III, and IV only

Explanation:

Net Present Value (NPV) is used to know the worth of a project and if it's worthwhile or not. When the NPV of a project is 0, it means that the project won't bring about a gain or loss.

When a project has a net present value equal to zero, then,

• the project produces a rate of return that just equals the rate required to accept the project.

• the project is expected to produce only the minimally required cash inflows.

• any delay in receiving the projected cash inflows will cause the project to have a negative net present value.

Therefore, the correct option is D

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Answer:

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Explanation:

According to the scenario, the given data are as follows:

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Drewson Health Foods has 16 comma 000 shares of $ 1 par common stock outstanding, which were issued at $ 15 per share. Drewson

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SE 157,000

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