Question: project with higher than average risk offers an expected return of 18%. Which statement is correct if the company's opportunity cost of capital is 12%

project with higher than average risk offers an expected return of 18%. Which statement is correct if the company's opportunity cost of capital is 12% and the project's opportunity cost of capital is 15%?

A) Project NPV is positive; it should be accepted.

B) Project NPV is negative; it should be rejected.

C) Project NPV is positive but it should be rejected.

D) Project NPV is negative but it should be accepted.

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