Answer:
Step-by-step explanation:
A project whose NPV equals zero shows that return on the project is equal to the cost of capital (hurdle rate). This may not seem like an attractive investment however, it is viable and given some conditions, a company may decide to invest in it. An example of such would be if investors and financial managers believe that the hurdle rate used in determining the risk of the project is exaggerated or if letting the available capital stay idle is more costly than investing it in a project that will break-even.