Making the accept or reject decision Pheasant Pharmaceuticals's decision to accept or reject project Alpha is independent of its decisions on other projects. If the firm follows the NPV method, it, should project Alpha. Which of the following statements best explains what it means when a project has an NPV of \$0? When a project has an NPV of $0, the project is earning a rate of return less than the project's weighted average cost of capital. It's OK to accept the project, as long as the project's profit is positive. When a project has an NPN of $0, the project is earning a rate of return equal to the project's weighited average cost of capital. It's OK to accept a project with an NPV of 30 , because the project is earning the required minimum rate of return. When a project has an NPV of 50 , the project is earning a profit of $0. A firm should reject any project with an NPV of 50 , because the project is not profitable