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You realize that the NPV of a project under consideration is $0. How would you proceed...

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Finance

You realize that the NPV of a project underconsideration is $0. How would you proceed with
the project? Discuss - in a maximum of half a page length - theprinciples that will guide your
decision-making for this project.

Answer & Explanation Solved by verified expert
4.3 Ratings (818 Votes)
Meaning of Zero NPV Net Present Value means the exact value the project would earn today It is generally considered that the projects with positive NPV should be considered Zero NPV means the project would earn the estimated rate or discount rate A discount rate is that rate in which todays cash flows from a particular investment are discounted or the present    See Answer
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You realize that the NPV of a project underconsideration is $0. How would you proceed withthe project? Discuss - in a maximum of half a page length - theprinciples that will guide yourdecision-making for this project.

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