Valerta Company used the net present value method and determined that project 34 had a zero net present value. What does this tell management about the project?
A) The return from this project is equal to the cost of capital.
B) The project guarantees company profitability.
C) The project's cash inflows will equal its cash outflows.
D) The project earns the company's desired minimum rate of return.

Question

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The Answer of Valerta Company used the net present value method and determined that project 34 had a zero net present value. What does this tell management about the project?
A) The return from this project is equal to the cost of capital.
B) The project guarantees company profitability.
C) The project's cash inflows will equal its cash outflows.
D) The project earns the company's desired minimum rate of return.

Valerta Company Used the Net Present Value Method and Determined