What is the NPV of a project that has an initial investment of $100,000, and expected cash flows of $45,000 each year for years 1 through 3? Use an 8% hurdle (aka discount) rate. Is this a project you should accept or reject? Calculate the Profitability Index for the project as well.

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the project we need to discount each cash flow back to ... View the full answer