Question: urgenr Siegmeyer Corp. is considering a new inventory system, Project A, that will cost $800,000. The system is expected to generate positive cash flows over

urgenr

Siegmeyer Corp. is considering a new inventory system, Project A, that will cost $800,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000

in year two, $400,000 in year three, and $200,000 in year four. Siegmeyer's required rate of return is 12%.

Based on the NPV calculated previously, Siegmeyer should

the project because its NPV is greater than

O Accept; zero

O Reject; zero

O Accept; one

O Reject; one

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