Projects that have a zero NPV when calculated at the WACC will provide sufficient returns to creditors and shareholders.

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 project's cost of capital, thus providing sufficient returns to both creditors and shareholders.

Projects That Have a Zero NPV When Calculated at the WACC