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You calculate the net present value (NPV) for a project your firm is considering. Using a 12% discount rate, the NPV is $600,000. The cost
You calculate the net present value (NPV) for a project your firm is considering. Using a 12% discount rate, the NPV is $600,000. The cost of the project is $1,200,000. What decision do you make? Group of answer choices Accept because the NPV is greater than $0. Reject because the NPV should be negative. None of these are correct. Reject because the NPV is less than the cost of the project. Accept because $600,000 divided by $1,200,000 is 50%, which is greater than the discount rate.
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