Question: Analysts at Tabby Fur Storage predict that the net present value of a proposed new $10 million warehouse is $1 million. How should these findings

 Analysts at Tabby Fur Storage predict that the net present value
of a proposed new $10 million warehouse is $1 million. How should
these findings be interpreted? The project does not meet the acceptance criteria

Analysts at Tabby Fur Storage predict that the net present value of a proposed new $10 million warehouse is $1 million. How should these findings be interpreted? The project does not meet the acceptance criteria of the NPV method and should be rejected. The project should be rejected because the NPV is less than the cost of the warehouse. Although NPV is positive, its value is too low for such a large expenditure and as a result, the project should be rejected. More information such as the payback period should be evaluated since the reliance on only one capital budgeting technique should be discouraged. The project should be accepted because it will add value to the firm. An advantage of the net present value (NPV) method is that it: is easy to use when available capital or resources are limited. does not employ time value of money techniques. does not rely on the discount rate. provides its users with a clear decision criterion The Seattle Corporation has been presented with an investment opportunity which will yield end of year cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firm's cost of capital is 10%. What is the NPV for this investment? Round to the nearest dollar (whole number)

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