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Skysong is contemplating a capital project costing $34838. The project will provide annual cost savings of $12800 for 3 years and have a salvage value

Skysong is contemplating a capital project costing $34838. The project will provide annual cost savings of $12800 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 0.909 0.909 2 0.826 1.736 3 0.751 2.487 This project is unacceptable because it has a negative NPV. acceptable because it has a zero NPV. O acceptable because it has a positive NPV. unacceptable because it earns a rate less than 10%

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