1. Managers of CVS Pharmacy are considering a new project. This project would be a new...

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Finance

1. Managers of CVS Pharmacy are considering a new project. Thisproject would be a new store in Odessa, Texas. They calculate thatthe NPV for this project is -$300,000. What decision should themanagers make, and why?
A. Accept the project, because NPV is positive.
B. Reject the project, because NPV is negative.
c. Accept the project, because NPV is negative.
D. Reject the project, because NPV is positive.
2. Olympus Property Management owns two million square feet ofland (about 46 acres) in the Woodlands. The managers have twoprojects for developing this property:
Galleria West Shopping Plaza, NPV = $11 billion
Ben Dover Office Complex, NPV = $13 billion
Once developed, Olympus will manage the property for 30 years.The property has space for only one or the other of theseprojects.
Which project(s) should the management at Olympus Propertychoose, and why?
A. Ben Dover Office Complex, because it has the higher NPV, andits NPV > 0.
B. Galleria West Shopping Plaza, because it has the higher NPV,and its NPV > 0.
C. Both projects, because both have positive NPV.
D. Neither project, because both have negative NPV.

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1 Managers of CVS Pharmacy are considering a new project This project would be a new store in Odessa Texas They calculate that the NPV for this project is 300000 What decision See Answer

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1. Managers of CVS Pharmacy are considering a new project. Thisproject would be a new store in Odessa, Texas. They calculate thatthe NPV for this project is -$300,000. What decision should themanagers make, and why?A. Accept the project, because NPV is positive.B. Reject the project, because NPV is negative.c. Accept the project, because NPV is negative.D. Reject the project, because NPV is positive.2. Olympus Property Management owns two million square feet ofland (about 46 acres) in the Woodlands. The managers have twoprojects for developing this property:Galleria West Shopping Plaza, NPV = $11 billionBen Dover Office Complex, NPV = $13 billionOnce developed, Olympus will manage the property for 30 years.The property has space for only one or the other of theseprojects.Which project(s) should the management at Olympus Propertychoose, and why?A. Ben Dover Office Complex, because it has the higher NPV, andits NPV > 0.B. Galleria West Shopping Plaza, because it has the higher NPV,and its NPV > 0.C. Both projects, because both have positive NPV.D. Neither project, because both have negative NPV.