Use the NPV decision rule to evaluate this project; should it be accepted or rejected?
A) $35,995.86, reject
B) $38,875.53, accept
C) $138,875.53, accept
D) $238,875.53, accept

Question

Quizplus · Accepted Answer

The NPV decision rule states that a project should be accepted if the NPV is greater than zero. Option B has an NPV of $38,875.53, which is greater than zero, so it should be accepted. Options A, C, and D all have NPVs that are greater than option B, but they are not the best choices since they are not feasible or realistic values.

Use the NPV Decision Rule to Evaluate This Project; Should