1. (Ignore income taxes in this problem.) ABC Co. is considering an investment opportunity having cash flows as described below: Project I would require an immediate cash outlay of $10,000 and would...

1. (Ignore income taxes in this problem.) ABC Co. is considering an investment opportunity having cash flows as described below:

Project I would require an immediate cash outlay of $10,000 and would result in cash savings of $3,000 each year for 8 years.

Required:

If ABC Co. has a required rate of return of 14%, determine if the project is acceptable. Use the NPV method.