Oriole is contemplating a capital project costing $40299. The project will provide annual cost savings of $15600 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. Year 1 2 3 Present Value of 1 at 10% This project is 0.909 0.826 0.751 PV of an Annuity of 1 at 10% 0.909 1.736 2.487 O acceptable because it has a zero NPV. O unacceptable because it earns a rate less than 10%. O acceptable because it has a positive NPV. O unacceptable because it has a negative NPV.

Oriole is contemplating a capital project costing $40299. The project will provide annual cost savings of $15600 for 3 years and havea salvage value of $2000, The company's required rate of return is 10%. The company uses straight-line depreciation. This project is accepteble because it has a zero NPV unacceptable because it earns arate less than 10x. acceptable because it has a positwe NPV. unacceptable because it has a negative NPV