A Proposal with an Initial Investment of $1 Million and a Net

Multiple Choice

A proposal with an initial investment of $1 million and a net present value of $1.2 million should be:

A) accepted as the proposal rate of return must be greater than the required rate of return.
B) accepted as the initial cost is positive.
C) rejected as the proposal rate of return is not high enough.
D) rejected as the proposal rate of return is less than the required rate of return.