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 straight-line depreciation. 
This project is
A) unacceptable because it earns a rate less than 10%.
B) acceptable because it has a positive NPV.
C) unacceptable because it has a negative NPV.
D) acceptable because it has a zero NPV.
Correct Answer:
Verified
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A)
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