Question: You calculate the net present value (NPV) for a project your firm is considering. Using a 12% discount rate, the NPV is $600,000. The cost

You calculate the net present value (NPV) for a project your firm is considering. Using a 12% discount rate, the NPV is $600,000. The cost of the project is $1,200,000. What decision do you make?

Group of answer choices

Reject because the NPV is less than the cost of the project.

Accept because $600,000 divided by $1,200,000 is 50%, which is greater than the discount rate.

None of these are correct.

Reject because the NPV should be negative.

Accept because the NPV is greater than $0.

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