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If a division manager in a large organization reports to you that the NPV of a proposed project is positive, what should you do? A.Re-evaluate
If a division manager in a large organization reports to you that the NPV of a proposed project is positive, what should you do?
A.Re-evaluate the project using an higher discount rate since the manager is probably too optimistic.
B.Try to understand the underlying economics of why the NPV could be positive for your firm.
C.All of the listed responses.
D.Accept the project since firm value is maximized by accepting all positive NPV projects.
E.None of the listed responses.
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