The NPV calculation of the Cloudy Corporation is evaluating an investment generating a result of $10,000. The
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Question:
The NPV calculation of the Cloudy Corporation is evaluating an investment generating a result of $10,000. The Cloudy Corporation has a minimum required rate of return of 8 percent on its projects. Given the result of their calculation, should the Cloudy Corporation pursue this investment?
Group of answer choices
This project should not be pursued because it does not generate the minimum required rate of return.
Since the NPV is positive, this project should be pursued.
This cannot be determined from this information.
A calculation of the project's IRR will allow the company to make a decision.
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