A project with a NPV of zero should be rejected since even the returns on U.S.Treasury bills are greater than zero.

Question

Quizplus · Accepted Answer

A project with a NPV of zero means it is expected to generate a return equal to the discount rate used in the NPV calculation, which could be competitive with or superior to alternative investments like U.S. Treasury bills, depending on the discount rate. Accepting such a project would not necessarily be inferior to investing in U.S. Treasury bills.

A Project with a NPV of Zero Should Be Rejected