A firm can accept a project with a net present value of zero because ________.
A) the project would maintain the wealth of the firm's owners
B) the project would enhance the wealth of the firm's owners
C) the project would maintain the earnings of the firm
D) the project would enhance the earnings of the firm

Question

Quizplus · Accepted Answer

Accepting a project with a net present value of zero would maintain the current value of the firm's owners, and therefore their wealth. It may not enhance their wealth or earnings, but it would at least maintain it.

A Firm Can Accept a Project with a Net Present