negative
zero
positive
independent
Answer is Right!
Answer is Wrong!
The correct answer is C. positive.
A project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be positive. This is because the present value of the cash flows will be greater than the initial investment, resulting in a positive net present value.
Option A is incorrect because a negative net present value indicates that the project is not worth pursuing. Option B is incorrect because a zero net present value indicates that the project is a break-even investment. Option D is incorrect because the net present value is not independent of the rate of return.