Cash inflows must equal the initial cost of project

Assignment Help Financial Management

Reference no: EM131913945

If a project has a net present value equal to zero,then: a. The total of the cash inflows must equal the initial cost of the project. b. The project earns a return exactly equal to its cost of capital. c. A decrease in the project’s initial cost will cause the project to have a negative NPV. d. Any delay in receiving the projected case inflows will cause the project to have a positive NPV. e. The project’s PI must also be equal to zero.

Reference no: EM131913945

Questions Cloud

Compute the amount of gross profit to be recognized : Compute the amount of gross profit to be recognized from the installment sale in 2013, 2014, 2015, and 2016 using point of delivery revenue recognition

What is net savings per dollar invested : A cooling, heating, and power (CHP) system, At an interest rate of 7%, what is the net savings per dollar invested?

What are the five steps involved in the hr planning process : What are the five steps involved in the HR Planning Process? Why is Planning instrumental to the Strategic Human Resource Professional?

Calculate the net benefit of outsourcing : Question - Outsourcing (Make-or-Buy) Decision - Calculate the net benefit (cost) of outsourcing the electric motors from Mini Motor Company

Cash inflows must equal the initial cost of project : If a project has a net present value equal to zero,then: a. The total of the cash inflows must equal the initial cost of the project.

Conduct critical thinking and the ability of your colleagues : Briefly describe a setting in which a discussion might occur in your profession, either an imagined situation or one you have experienced.

Evaluate the findings from your research : The ability to present one's findings from an evaluation or research study in a concise and persuasive manner is a requirement for any successful manager.

Describe at least four claims that might commonly be made : Describe at least four claims that might commonly be made that display some of the errors in reasoning covered in this module's readings.

Discuss the kinds of risks that are most intimidating : Analyze how the risks and the approaches to anticipate these risks differ for each company. Discuss the kinds of risks that are most intimidating for each.

User Account

All Pages