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After working on three valuation projects, you have calculated the Net Present Value for each project based on an 8% discount rate provided to you
After working on three valuation projects, you have calculated the Net Present Value for each project based on an 8% discount rate provided to you by your CFO. NPV for Project A is $312,000, NPV for Project B is ($103,000), and NPV for Project C is $206,000. Assuming no capital constraints and NPV as the only selection criteria, which project or projects would you recommend accepting?
A. | Project A. | |
B. | Project B. | |
C. | Project C. | |
D. | Project A. and C. | |
E. | None of the projects should be accepted. |
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