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When a capital budgeting project has an NPV of zero, what does this mean? The project’s...

When a capital budgeting project has an NPV of zero, what does this mean?

  • The project’s IRR will be less than the required hurdle rate for the project
  • The firm’s stockholders will earn a positive return, but it will be less than their required return, given the risk of the investment
  • The firm’s stockholders will earn a negative return
  • The firm’s security holders will earn their required rate of return, given the risk of the investment
  • none of the above
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