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Windsor is contemplating a capital project costing $34330. The project will provide annual cost savings of $13200 for 3 years and have a salvage value

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Windsor is contemplating a capital project costing $34330. The project will provide annual cost savings of $13200 for 3 years and have a salvage value of $2000. The company's required rate of return is 10%. The company uses straight-line depreciation Year 1 2 3 Present Value PV of an Annuity of 1 at 10% of 1 at 10% 909 909 826 1.736 2.487 751 This project is unacceptable because it has a negative NPV. acceptable because it has zero NPV. unacooptable because it as a rate less than 10% acceptable because it has a positive NPV

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