If the NPV of a project is zero is this the same as breakeven? Should one...

Question

Question

If the NPV of a project is zero is this the same as breakeven? Should one invest in this project then?

business accounting

Answer 1

Answer #1

Ans:

If the NPV of a project is zero, then the project is not expected to result in any significant gain or loss.

In this situation management should invest in this project by considering non-monetary factors such as goodwill etc.

Answer 2

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