An Investment Was Analyzed and Its NPV Was Determined to Be

An investment was analyzed and its NPV was determined to be $2,000. The company's expected rate of return was 12%. The manager of the division is currently earning 12% on its other investments. This investment will generate losses for the first two years. Which of the following statements best describes what the manager will likely be motivated to do if he is evaluated based on profits?

A) Accept the proposal since the rate of return expected is equal to the rate used for the analysis
B) Accept the proposal since the rate of return on the investment is equal to the required rate of return
C) Do not accept the proposal since the rate of return expected is less than the rate used for the analysis
D) Do not accept the proposal since losses are expected for the first two years