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Option C is correct A project is accepted or rejected based on only the net present value(NPV).A project with positive NPV is accepted and with
Option C is correct A project is accepted or rejected based on only the net present value(NPV).A project with positive NPV is accepted and with negative NPV is rejected but risk associated with the project is not taken into account.There might be some safe projects with a negative NPV which are rejected and some risky projects with positive NPV which are accepted.
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