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You Are Given a Job to Make a Decision on Project

Question 2

Multiple Choice

You are given a job to make a decision on project X, which is composed of three independent projects A, B, and C that have NPVs of + $70, -$40 and + $100, respectively. How would you go about making the decision about whether to accept or reject the project?


A) Accept project X as it has a positive NPV.
B) Reject project X.
C) Break up the project into its components: Accept A and C, but reject B.
D) Break up the project into its components: Accept C.

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