Question: Assume a company is evaluating three different investments. Investment A has a positive NPV of $1,000. Investment B has a positive NPV of $2,000. Investment

Assume a company is evaluating three different investments. Investment A has a positive NPV of $1,000. Investment B has a positive NPV of $2,000. Investment C has an NPV of $0.00. Which of the following statements is most true?

A and B are worth investing in, but C should be avoided by the company, since it does not earn the minimum cost of capital.

Only B is worthy of the company's investment money, since the others failed to earn the minimum cost of capital

Only A and B should be invested in, because they are the only ones that earn at least the minimum cost of capital.

All three investments are worth investing in by the company (though they should be carefully compared to each other and evaluated further), since all three at least made the minimum cost of capital.

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