Question: If a project has a net present value equal to zero, then: The total of the cash inflows must equal the initial cost of the

If a project has a net present value equal to zero,

If a project has a net present value equal to zero, then: The total of the cash inflows must equal the initial cost of the project. Any delay in receiving the projected cash inflows will cause the project to have a positive NPV. The IRR is equal to the required rate of return. A decrease in the project's initial cost will cause the project to have a negative NPV. IRR must also equal zero

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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!

Question 19 (0.5 points) If a project has a net present value equal to zero, then: The total of the cash inflows must equal the initial cost of the project. The IRR is equal to the required rate of...

1.If a project has a net present value equal to zero, then: Athe total of the cash inflows must equal the initial cost of the project. Bthe project earns a return exactly equal to the discount rate...

If a project has a net present value equal to zero, then: The total of the cash inflows must equal the initial cost of the project The project earns a return exactly equal to the discount rate A...

Question 10 -- /5 If a project has a net present value equal to zero, then: The total of the cash inflows must equal the initial cost of the project. The project earns a return exactly equal to the...

If a project has a net present value equal to zero, then: The total of the cash inflows must equal the initial cost of the project. O The IRR is equal to the required rate of return. O IRR must also...

Question 3 10 pts If a project has a net present value equal to zero, then: The total of the cash inflows must equal the initial cost of the project. The project earns an internal rate of return...

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...

(3 points) If a project has a net present value equal to zero, then: A. a decrease in the project's initial cost will cause the project to have a negative NPV. B. the project earns IRR exactly equal...

21 Given the following ng annual net cash flows, determine the internal rate of return to the cash ole percent of a project with an initial outlay of $1,520. Year Net Cash Flow $1,000 $1,500 $500 A....

WasteTec is a large construction company that specializes in the construction of large wastewater treatment plants and recycling plants. A major cost driver in either type of facility is the capacity...

Define the term capital intensity. Explain how a decline in capital intensity would affect the AFN, other things held constant. Would economies of scale combined with rapid growth affect capital...

What is the difference between a fixed annuity, a variable annuity, and an equity - indexed annuity?

CT Corp Comprehensive Question Canadian Tire Corporation, Limited (Canadian Tire) is a family of companies that includes a retail segment and a financial services division, among others. The retail...

Define cooptation and explain how it can be used in building global systems.

15-5 If you were a manager in a company that operates in many countries, what criteria would you use to determine whether an application should be developed as a global application or as a local...

15-3 What are the challenges posed by global information systems and management solutions for these challenges?