will not

accept the project if she is being evaluated based on the accrual accounting rate of$$return$,$ because the project

does not meet

the

$14\%14\%$

threshold above which

AbbyAbby

earns a bonus.

AbbyAbby

should

accept the project if she wants to act in the$$firm$\text{'}$s best interest because the NPV is

positive

$,$

implying$$that$,$ based on the cash flows$$generated$,$ the project

meets

the$$firm$\text{'}$s required

$14\%14\%$

rate of return.