If a project has a net present value equal to zerothen a


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 its cost of capital. 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 case inflows will cause the project to have a positive NPV. e. The project’s PI must also be equal to zero.

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Financial Management: If a project has a net present value equal to zerothen a
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