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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? A) Accept project X as it has a positive NPV. B) Reject project X. C) Break up the project into its components: Accept A and C, but reject B. D) Break up the project into its components: Accept C.

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? A) Accept project X as it has a positive NPV. B) Reject project X. C) Break up the project into its components: Accept A and C, but reject B. D) Break up the project into its components: Accept C.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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? A) Accept project X as it has a positive NPV. B) Reject project X. C) Break up the project into its components: Accept A and C, but reject B. D) Break up the project into its components: Accept C.
Transcribed Image Text: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? A) Accept project X as it has a positive NPV. B) Reject project X. C) Break up the project into its components: Accept A and C, but reject B. D) Break up the project into its components: Accept C.
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