When the Net Present Value (NPV) equals 0, it indicates that the project's expected cash inflows are exactly equal to the present value of its cash outflows, meaning the project is breaking even. In this scenario, the investment neither adds nor detracts value, and the return on investment matches the discount rate used. This is often seen as a threshold for decision-making, where an NPV greater than 0 suggests a potentially profitable investment, while an NPV less than 0 indicates a loss.
15 percent 0 equals 0; 0 percent 15 equals 0. Both the above are true
yes
maybe
0 it equals 0
For y - 2y - 3y equals 0, y equals 0.
why investment in financial market have zero NPV? where as firms can find many investments in their product markets with positive NPVs.
no it increases npv
15 percent 0 equals 0; 0 percent 15 equals 0. Both the above are true
NPV decreases when the cost of capital is increased.
yes
The NPV assumes cash flows are reinvested at the: A. real rate of return B. IRR C. cost of capital D. NPV
0
maybe
0
It equals 0.
It equals 0
0 it equals 0