A Project with a Higher Than Average Risk Offers an Expected

A project with a 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.

Correct Answer:

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