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Sunland is contemplating a capital project costing $37568. The project will provide annual cost savings of $14200 for 3 years and have a salvage value

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Sunland is contemplating a capital project costing $37568. The project will provide annual cost savings of $14200 for 3 years and have a salvage value of $3000. The company's required rate of return is 10%. The company uses straight-line depreciation. Present Value PV of an Annuity of 1 at 10% of 1 at 10% Year 1 .909 .909 2 .826 1.736 3 1751 2.487 This project is unacceptable because it has a negative NPV. acceptable because it has zero NPV. unacceptable because it ears a rate less than 10%. O acceptable because it has a positive NPV

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