subject
Business, 09.08.2021 23:30 tannercarr3441

Mini inc, Is contemplating a capital project costing $47,019. The project will provide annual cost savings of $18,000 for 3 years and have a salvage value of $3,000. The company's required rate of return is 10%. The company uses straightline depreciation. Year Present Value of 1 at 10% PV of an Annuity of 1 at 10%
1 0.909 0.909
2 0.826 1.736
3 0.751 2.487

This project is:

a. unacceptable because it has a negative NPV.
b. acceptable because it has a zero NPV.
c. unacceptable because it earns a rate less than 10%
d. acceptable because it has a positive NPV.

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 18:20
Saeed needs money to purchase tools, basic office supplies, parts to refurbish equipment, accounting software, and legal fees. believing saeed's business will be a success, an investor invests $5,000 to saeed open his business. in return, saeed agrees to repay the investor the $5,000 plus 17 percent of the profits of the business. calculate the return on investment for the investor if saeed's business makes $7,000 in profit as a total return of the business in its first year.
Answers: 1
question
Business, 22.06.2019 01:30
Juwana was turned down for a car loan by a local credit union she thought her credit was good what should her first step be
Answers: 1
question
Business, 22.06.2019 09:30
What is the relationship among market segmentation, target markts, and consumer profiles?
Answers: 2
question
Business, 22.06.2019 21:00
Describe what fixed costs and marginal costs mean to a company.
Answers: 1
You know the right answer?
Mini inc, Is contemplating a capital project costing $47,019. The project will provide annual cost s...
Questions
question
Mathematics, 07.03.2021 20:20
question
Chemistry, 07.03.2021 20:20
question
English, 07.03.2021 20:20