Two proposed projects have the following II and OCFs:

PP Year 0 1 2 3

V -300 100 100 100

B -400 150 150 150

Using a WACC of 10%; which of the proposed projects are acceptable and why?

		PP "V" is Acceptable as NPV > 0; PP "B" is Acceptable as NPV > 0
		PP "V" is Rejected as NPV < 0; PP "B" is Acceptable as NPV > 0
		PP "V" is Acceptable as NPV > 0; PP "B" is Rejected as NPV < 0
		PP "V" is Rejected as NPV < 0; PP "B" is Rejected because NPV < 0