The project has net present value of zero

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Brian is considering opening a McDonalds in Mumbai. His advisors believe the project has a net present value of zero. Which one of the following must be true?

The project requires no initial cash investment.

The project has no cash flows.

The summation of all of the project's cash flows is zero.

The project's expected cash inflows equal its cash outflows in current (present value) dollar terms.

The project has a zero percent rate of return.

Widgets-R-Us Inc.'s expansion into the Starkville widget market has an initial cost of $928,400. The market value of expanding is $1,339,060. The difference between these two values is called:

Differential Net Present Value.

Profitability index.

Payback value.

Net present value.

Initial Expansion Return.

Reference no: EM132042185

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