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Berg Company is considering a capital project costing $59,109. The project will provide annual cost savings of $18,000 for 4 years and have a salvage

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Berg Company is considering a capital project costing $59,109. The project will provide annual cost savings of $18,000 for 4 years and have a salvage value of $3,000. The company's required rate of return is 10%. The company uses straight-line depreciation Year 1 2 Present Value of 1 at 10% .909 .826 .751 .683 .621 3 PV of an Annuity of 1 at 10% .909 1.736 2.487 3.170 3.791 4 5 This project is unacceptable because it earns a rate less than 10%. acceptable because it has a positive NPV. unacceptable because it has a negative NPV. acceptable because it has a zero NPV. unacceptable because it has a zero NPV. TIUM SOUND

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