Asked by
Aleksandra Pachebut
on Nov 07, 2024
Verified
If a project has a net present value equal to zero, then the project is expected to produce only the minimally required cash inflows.
Net Present Value
An economic indicator for assessing an investment's gainfulness, which involves the deduction of the present value of cash expenditures from the present value of cash receipts over a certain period.
Minimally Required
The least amount that is necessary or allowed, especially in the context of financial or regulatory requirements.
Cash Inflows
Money or the amount of money received by a business from its operational, financing, and investing activities.
- Comprehend the principle of Net Present Value (NPV) and its significance in analyzing a project's viability.
Verified Answer
AB
Learning Objectives
- Comprehend the principle of Net Present Value (NPV) and its significance in analyzing a project's viability.