Pharoah Inc. is contemplating a capital project with a cost of $149000. The project will generate net cash flows of $44000 for year 1, $60000 for year 2 and $59000 for year 3. The asset has a salvage value of $10000 and straight-line depreciation will be used. The company's required rate of return is 10%. 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 unacceptable because it earns a rate less than 10%. O acceptable because it has a positive NPV. unacceptable because it has a zero NPV. O acceptable because it has a return of greater than 10%