You just heard one of your colleagues saying that npv0, Finance Basics

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You just heard one of your colleagues saying that npv0

Question: You just heard one of your colleagues saying that NPV=0 means that the project makes no profit no loss? Do you agree with your friend? Explain. Describe how share prices should respond to a (NPV=+) and a (NPV=-) management decisions. Consider only financial claimants to a firm's cash flows.

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