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The NPV of an Investment Proposal Becomes Negative Solely as a Result

Question 103

Multiple Choice

The NPV of an investment proposal becomes negative solely as a result of allocating a portion of the corporation president's salary.It is most likely the case that:


A) the project should be accepted.
B) rejecting the project is the correct decision.
C) the allocation should be postponed until the project is accepted.
D) the salary should be considered an opportunity cost of the project.

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