Respuesta :

The Net Present Value (NPV) of an investment will be zero if it is generating a return that is equal to the needed return. Therefore, the answer is "zero (0)."

What is Net Present Value (NPV)?

The concept of net present value (NPV) is used to calculate the current value of all projected future cash flows, including the initial capital expenditure.

To determine which projects are most likely to generate the highest profit, it is frequently used in capital budgeting. The amount and regularity of future cash flows affect the formula for net present value.

The NPV calculation takes into account the fact that one dollar now is not worth one dollar tomorrow.

Amounts of money today are worth more than equivalent sums of money in the future because they can be used to earn returns in the future (assuming positive returns are anticipated).

Therefore, to ascertain if a long-term project will be profitable, capital budgeting analysis techniques such as net present value are applied.

Hence, zero is the answer to the given question.

Check the link below to learn about net present value;

https://brainly.com/question/27557482

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