Question

An npv of zero implies that an investment's ____________.

a.cost exceeds the present value of its cash inflows
b.cost is equal to the present value of its cash inflows
c.irr is greater than the firm's required rate of return
d.present value of cash inflows are negative
e.present value of cash inflows exceed the investment's cost

Answer 1

I believe the answer is B: cost is equal to the present value of its cash inflows.

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