Question: Should we accept a project with NPV equal exactly to Zero? Justify your answer. NPV equals zero means that the return generated by the project

 Should we accept a project with NPV equal exactly to Zero?

Should we accept a project with NPV equal exactly to Zero? Justify your answer. NPV equals zero means that the return generated by the project is equal to the return required by the investors. Scenario analysis is required. If NPV equals zero for the optimistic case, we should reject the project. If NPV equals zero for pessimistic case, we should accept the project

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!