If a project has a net present value equal to zero, then the project is expected to produce only the
minimally required cash inﬂows.

Question

Quizplus · Accepted Answer

A net present value (NPV) of zero indicates that the project's cash inflows are exactly sufficient to cover the initial investment and the required rate of return, meaning it meets but does not exceed the minimum financial expectations.

If a Project Has a Net Present Value Equal to Zero