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Swifty is contemplating a capital project costing $33345. The project will provide annual cost savings of $12200 for 3 years and have a salvage value
Swifty is contemplating a capital project costing $33345. The project will provide annual cost savings of $12200 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. This project is acceptable because it has a positive NPV. unacceptable because it has a negative NPV. acceptable because it has a zero NPV. unacceptable because it earns a rate less than 10%
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