Question: A project has a net present value of zero. Which one of the following best describes this project? a. The project has a zero percent

A project has a net present value of zero. Which one of the following best describes this project?

a. The project has a zero percent rate of return.

b. The project requires no initial cash investment.

c. The project has no cash flows.

d. The summation of all of the project's cash flows is zero.

e. The project's cash inflows equal its cash outflows in current dollar terms.

Step by Step Solution

★★★★★

3.41 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The detailed answer for the above question is provided below The correct answer is e The projects ca... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...

Q:

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...

Q:

You are considering an investment project with the cash flows of -300 (the initial cash flow), 800 (cash flow at year 1), -200 (cash flow at year 2). Given the discount rate of 10%, compute the...

Q:

Find steady state current i of a RL circuit with L=2 H and R=892 which can be modeled by the following differential equation: 2di/dt+8i=v(t) where v(t) = 16 cos(10t -45) with phasor technique. Also...

Q:

Joe Meat Corp. is considering replacing its old freezer with a new one that has more capacitiy. The company estimates that it can sell more meat products with and estimated increase of $15,000. The...

Q:

A study of the #MeToo movement, a movement against sexual assault and harassment, found in a random sample of adults that mean support for the movement (0 = no support to 100 = absolute support)...

Q:

In the first circuit of the last exercise, assume that the probabilities pi are all equal. What value should each pi be so that the probability of electricity transmission through the circuit is 99%?

Q:

The following information applies to Bowling Green Metals Corporation for the year ended December 31, 2012: Total revenues from regular operations ........... $ 832,000 Total expenses from regular...

Q:

what is this answer? If management can estimate the amount of gain that will occur due to litigation for the company, and the gain is certain, a contingent gain should be Reported as a gain, but not...

Q:

Part 1: Hypothetical Tax Code 1 Consider a simplified version of the real tax code. Assume that the tax rate on all taxable income is 15% and the standard deduction ($6,350) and personal exemption...

Q:

Q:Question:5. (20 Points) Use the formal definition of the asymptotic notation to prove that: 30 n^2+100 ??(n^3)A:Answer:See a step by step answer

Q:

Seven Administrative Assistants took a timed typing test. The test was timed for two minutes. Performance was based on how many words were typed during the two minutes. Alan typed more words than...

Q:

Hiring and training the restaurant staff. how you intend to acquire your staff. How and where will you advertise your jobs? Give an example of a brief job description for a position in your catering...

Q:

The form of energy processed by vision is ______________. Question 20Answer a. Sound waves b. Light waves c. Chemical signals d. Electric impulses

Q:

This is based on the plastic straw articles below. Be sure to base your analysis on the snippets provided. Be specific in the analysis, especially for the industries and the stakeholders. Based on...

Q:

Supply chain manager proposes two altenatives 4 week lead time reduction by workign with alternative supplier or Reducing the number of DCs 10 reduction in number of DCs a. Which alternative do you...

Q:

coorperations info: sales: $257,000 vc: $51,400 fc: $17,870 noi: $187,730 how much is the contribution margin?

Q:

Fahrad Inc. sells all of its product on account. Fahrad has the following accounts receivable payment experience: Percent paid in the month of sale .........10 Percent paid in the month after the...

Q:

CNX Motors is preparing a sales budget for the current year for the service department that is based on last years actual amounts. Management is interested in understanding what might happen if the...

Q:

Explain the implications of not establishing an ethical work environment.

Q:

This exercise requires students to discuss ways in which nonmanufacturing companies might use lean techniques to improve their companies.

Q:

An article on the PureEnergySystems.com website written by Louis LaPoint discusses a product called acetone. The article stated that Acetone 1 CH 3 COCH 3 2 is a product that can be purchased...

Q:

One of the advances that helped to diminish carpal tunnel syndrome is ergonomic keyboards. The ergonomic keyboards may also increase typing speed. Ten administrative assistants were chosen to type on...

Q:

The United Way raises money for community charity activities. Recently, in one community, the fundraising committee was concerned about whether there is a difference in the proportion of employees...