Question: Each choice listed below represents a net present value of a potential project. If you were a CFO of a company, which project would you

  1. Each choice listed below represents a net present value of a potential project. If you were a CFO of a company, which project would you choose? Assume you can only choose one.

a. NPV = $200,000

b. NPV = $500,000

c. NPV=$0

d. NPV = -$100,000

e. In theory, an investor should make any investment with a positive NPV, which means the investment is making money. Similarly, an investor should refuse any option that has a negative NPV because it only subtracts from the value. When faced with multiple investment choices, the investor should always choose the option with the highest NPV.

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