You are a junior financial analyst at CSU Corp. and evaluate the NPV of a project for your boss under different scenarios. So far, you can see the projects NPV is +$40,200 when evaluated at a discount rate of 12%, but -$13,200 when evaluated at a discount rate of 17%. CSU Corps actual discount rate is 15%. Your boss is upset, and wants an answer on whether the project looks good. What do you tell him?

1. The project should be taken, as its positive NPV.

2. The project should not be taken, as its negative NPV.

3. Its going to be close, but I have to re-run the numbers and evaluate whether the project should be taken.