If a project's net present value is zero,the project should be rejected because it does nothing for shareholders' wealth.

Question

Quizplus · Accepted Answer

A project with a net present value of zero means that the project's expected cash inflows equal its expected cash outflows, resulting in no gain or loss for shareholders. Therefore, it is neither advantageous nor disadvantageous to the shareholders, and considering other factors such as strategic reasons or broader economic impact, the project may or may not be accepted.

If a Project's Net Present Value Is Zero,the Project Should