Please see the question listed below. I already have the correct answer I just need to understand the logic behind the answer. Please explain. I can use a financial calculator, excel, or basic math. Preferably which ever is easier.

8.You are given a job to make a decision on project X, which is composed of three independent projects A, B, and C that have NPVs of + $70, -$40 and + $100, respectively. How would you go about making the decision about whether to accept or reject the project?

Break up the project into its components: accept C.

Accept project X as it has a positive NPV.

Break up the project into its components: accept A and C, but reject B.

Reject project X