If a project has a net present value equal to zero, then any delay in receiving the projected cash inflows will cause the project to have a negative net present value.

Question

Quizplus · Accepted Answer

A net present value (NPV) of zero means the project's cash inflows are exactly equal to the outflows when discounted at the project's cost of capital. Any delay in cash inflows would reduce their present value, making the NPV negative.

If a Project Has a Net Present Value Equal to Zero