Which one of the following is FALSE for a project whose NPV equals zero? Group of...
Which one of the following is FALSE for a project whose NPV equals zero?
Group of answer choices
The project will have no impact on firm value.
The project earns more than the required return.
The IRR is equal to the required rate of return
The projects cash outflows are equal to the present value of the cash inflows.
Homework Answers
When Net present value = 0, it means the present value of cash inflows less present value of cash outflows equal to zero.
NPV = 0, when the required return is equal to the Internal rate of return
So, the firm will be indifferent in taking decisions.
So, the False statement is The project Earns more than the required return
Option '2' is False
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