Monty is contemplating a capital project costing $37822. The project will provide annual cost savings of $14000 for 3 years and have a salvage value of $4000. 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 .909 .909 2 .826 1.736 3 .751 2.487 This project is unacceptable because it has a negative NPV. acceptable because it has zero NPV. acceptable because it has a positive NPV. unacceptable because it earns a rate less than 10%. Metlock Corp. has an 8% required rate of return. It's considering a project that would provide annual cost savings of $46000 for 5 years. The most that Johnson would be willing to spend on this project is Present Value PV of an Annuity of 1 at 8% Year of 1 at 8% 1 0.926 0.926 2 0.857 1.783 3 0.794 2.577 4 0.735 3.312 5 0.681 3.993 $152352. $183678. $31326. $115837. Use the following table. Present Value of an Annuity of 1 Period 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company has a minimum required rate of return of 9%. It is considering investing in a project which costs $260000 and is expected to generate cash inflows of $120000 at the end of each year for three years. The net present value of this project is $303720. $30372. $60000. $43720. The primary capital budgeting method that uses discounted cash flow techniques is the net present value method. cash payback technique. annual rate of return method. profitability index method