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Wildhorse Inc is contemplating a capital project with a cost of $142000. The project will generate net cash flows of $42000 for year 1 ,

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Wildhorse Inc is contemplating a capital project with a cost of $142000. The project will generate net cash flows of $42000 for year 1 , $54000 for year 2 and $65000 for year 3 . The asset has a salvage value of $11000 and straight -line depreciation will be used. The company's required rate of return is 10%. acceptable because it has a return of greater than 10K : unacceptable because it has a zero NPV. acceptable because it has a positive NPV. unacceptable becouse it earns a rate less than 10%

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