If the net present value is exactly equal to zero, the present value of the investment's stream of future operating profits is _______the present value of its cost.
A)greater than
B)exactly double
C)less than
D)equal to

Question

Quizplus · Accepted Answer

If the net present value is exactly equal to zero, then the present value of the investment's stream of future operating profits is equal to the present value of its cost. This means that the investment will yield exactly the required rate of return for the investor, making it an acceptable investment.

If the Net Present Value Is Exactly Equal to Zero