Calculate the PI given the following cash flows if the appropriate required rate of return is 10%.
Question:
YEAR CASH FLOWS
0.......... -$ 55,000
1.......... 10,000
2.......... 10,000
3.......... 10,000
4.......... 10,000
5.......... 10,000
6.......... 10,000
Should the project be accepted? Without calculating the NPV, do you think it would be positive or negative? Why?
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Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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