# A project has estimated annual net cash flows of $86,400 for five years and is estimated to

## Question:

A project has estimated annual net cash flows of $86,400 for five years and is estimated to cost $259,000. Assume a minimum acceptable rate of return of 12%. Using Exhibit 2, determine (1) the net present value of the project and (2) the present value index, rounded to two decimal places.

**Exhibit 2:**

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**Related Book For**

## Financial and Managerial Accounting Using Excel for Success

**ISBN:** 978-1111993979

1st edition

**Authors:** James Reeve, Carl S. Warren, Jonathan Duchac