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urgenr Siegmeyer Corp. is considering a new inventory system, Project A, that will cost $800,000. The system is expected to generate positive cash flows over
urgenr
Siegmeyer Corp. is considering a new inventory system, Project A, that will cost $800,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000
in year two, $400,000 in year three, and $200,000 in year four. Siegmeyer's required rate of return is 12%.
Based on the NPV calculated previously, Siegmeyer should
the project because its NPV is greater than
O Accept; zero
O Reject; zero
O Accept; one
O Reject; one
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