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If a Project Has a Net Present Value Equal to Zero,then

Question 10

Multiple Choice

If a project has a net present value equal to zero,then:


A) the initial cost of the project exceeds the present value of the project's subsequent cash flows.
B) the internal rate of return exceeds the discount rate.
C) the project produces cash inflows that exceed the minimum required inflows.
D) any delay in receiving the projected cash inflows will cause the project's NPV to be negative.
E) the discount rate exceeds the internal rate of return.

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