If a company's required rate of return is 10% and, in using the net present value method, a project's net present value is zero, this indicates that the O project's rate of return is less than the minimum rate required. 0 project earns a rate of return of 10%. O project's rate of return exceeds 10%. 0 project earns a rate of return of 0%. Save for Later Attempts: 0 of 1 used Windsor is contemplating a capital project costing $34330. The project will provide annual cost savings of $13200 for 3 years and have a salvage value of $2000. The company's required rate of return is 10%. The company uses straight-line depreciation. Present Value PV of an Annuity Year of 1 at 10% of 1 at 10% 1 0.909 0.909 2 0.826 1.736 3 0.751 2.487 This project is O unacceptable because it earns a rate less than 10%. O unacceptable because it has a negative NPV. O acceptable because it has a positive NPV. O acceptable because it has a zero NPV. Save for Later Attempts: 0 of 1 used To avoid rejecting projects that actually should be accepted, 1. Intangible benefits should be ignored. 2. Conservative estimates of the intangible benefits' value should be incorporated into the NPV calculation. 3. Net present value should be calculated without regard to intangible benefits and then, if the NPV is negative, the present value of the intangible benefits should be estimated and compared to the amount of the negative NPV. O 1 0 2 0 3 O both 2 and 3 are correct Save for Later Attempts: 0 of 1 used Submit