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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 the discount rate.

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 cash inflows will cause the project to have a positive NPV.

E. the project's PI must be also be equal to zero.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M942248

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