If an investment is producing a return that is equal to the required return, the investment's net present value will be:
A)positive.
B)greater than the project's initial investment.
C)zero.
D)equal to the project's net profit.
E)less than, or equal to, zero.

Question

Quizplus · Accepted Answer

When an investment's return equals the required return, the net present value (NPV) is zero, as the present value of cash inflows equals the initial investment.

If an Investment Is Producing a Return That Is Equal