The correct answer is D) in the project with the highest positive NPV.
The net present value (NPV) is a financial metric used in investment decision making that calculates the present value of cash flows generated by a project or investment. The investment decision rule for NPV is to invest in the project with the highest positive NPV. A positive NPV indicates that the present value of cash inflows is greater than the present value of cash outflows, suggesting that the investment is expected to generate a net profit. By choosing the project with the highest positive NPV, investors aim to maximize their returns and make financially favorable investment decisions.
