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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 a negative net present value.
A. II and III only
B. II and IV only
C. I, II, and IV only
D. II, III, and IV only

Respuesta :

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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