Assume that you are evaluating an investment proposal which has an initial investment of $100,000 and cash flows presently valued at $118,000. Should you accept the proposal and why?

A) No, because inflation rate would be higher than the rate of return.

B) Yes, because NPV is positive.

C) Not sure, because I do not know the expected return rate.

D) No, because initial investment should be greater than the cash flows presently valued.