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When projects are independent, the decision criterion for NPV is:
AAccept the highest-NPV project only
BReject all
CAccept all projects with NPV > 0
DAccept based on payback alone
Answer & Solution
Correct answer: C. Accept all projects with NPV > 0
1. Independent projects can all be accepted simultaneously (subject to capital).
2. Accept all projects with positive NPV.
3. Ranking matters only under capital rationing.
_Source: ICAI BoS CA Inter Paper 6A, Ch 7 "Investment Decisions", §4.2_