The following are independent situations. For each capital budgeting project, indicate whether management should accept or reject the project and list a brief reason why.

Micron Inc. evaluated a potential investment and determined the NPV to be zero. Micron Inc.s required rate of return is 9.1% and its cost of capital is 6.4%.

Gramercy Inc. is looking at an investment project with an internal rate of return of 10.8%. The initial outlay for the investment is $90,000. The hurdle rate or minimum acceptable rate of return is 10.2%.

Dinamo Inc. is looking at an investment project that has an NPV of ($5,000). The hurdle rate is 8%.