If a project is assigned a required rate of return equal to zero,then:
A)the project will always be rejected.
B)the project will always be accepted.
C)the timing of the project's cash flows has no bearing on the value of the project.
D)whether the project is accepted or rejected will depend on the timing of the cash flows.
E)the project can never add value for the shareholders.

Question

Quizplus · Accepted Answer

The timing of the project's cash flows has no bearing on the value of the project when the required rate of return is zero.

If a Project Is Assigned a Required Rate of Return