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1.Should NPV decision be accepted when the net present value is equal to zero?

1.Should NPV decision be accepted when the net present value is equal to zero?

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If the decision is between two mutually exclusive projects, obviously the project with higher NPV should be selected. But if there is a single project and the NPV is zero, the project could be accepted. It is because zero NPV doesn't mean that no money is being made. It just implies that we will not make any more or less money than the rate of Investment implied by the discount rate. So a zero NPV doesn't mean no value . Rather it means we will earn a rate of return equal to the discount rate. If we are discounting the cash flows at 6% discount rate, and get NPV of 0 , then we are earning a return of 6%.  

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