A company is evaluating the following $5$ year contract. Cost of equipment $$200,000$Working capital $$100,000$Recalibration equipment year $3$ $$50,000$Salvage value year $5$ $$7,000$Annual net cash inflows $$100,000$PV of ordinary annuity for $5$ years at $10\%=3\mathrm{.}791$PV of $$1$ at $10\%$ year $3=\mathrm{.}751$PV of $$1$ at $10\%$ year $5=\mathrm{.}621$Working capital requirements will be released in year $5$The Companys discount rate is $10\%$ Should the Company accept this project?A company is evaluating the following $5$ year contract. Cost of equipment $$200,000$Working capital $$100,000$Recalibration equipment year $3$ $$50,000$Salvage value year $5$ $$7,000$Annual net cash inflows $$100,000$PV of ordinary annuity for $5$ years at $10\%=3\mathrm{.}791$PV of $$1$ at $10\%$ year $3=\mathrm{.}751$PV of $$1$ at $10\%$ year $5=\mathrm{.}621$Working capital requirements will be released in year $5$The Companys discount rate is $10\%$ Should the Company accept this project?Yes, the project yields a positive net present valueNo, the project yields a negative net present valueNo, the payback years are too highYes, the payback years are short

A project st be accted of the net present value equals zero. True or false