Elkins Co$.$ is considering an investment in equipment for a new product line with a cost of $$48,625,$ a terminal value of $$6,283,$ and a useful life of $5$ years. The project will provide an annual contribution margin of $$12,500.$ The required rate of return is $12\%.$ Ignore income taxes.

This project is

Question $2$ options:

a$)$ Unacceptable, because it earns a rate below $12\%.$

b$)$ Acceptable, because it has a positive NPV$.$

c$)$ Unacceptable, because it has a $0$ NPV$.$

d$)$ Acceptable, because it earns exactly $12\%.$