Projects that have a zero NPV when calculated at the WACC will provide sufficient returns to all stakeholders.

Question

Quizplus · Accepted Answer

A project with a zero NPV (Net Present Value) when calculated at the WACC (Weighted Average Cost of Capital) indicates that it is expected to generate returns exactly equal to the cost of capital, thus providing sufficient returns to all stakeholders by covering the cost of the investment and meeting the required rate of return.

Projects That Have a Zero NPV When Calculated at the WACC