Question: 1. A firm is evaluating a project that yields the following after-tax net cash flows: $7,000 a year for 8 years and -$3,000 at year

1. A firm is evaluating a project that yields the following after-tax net cash flows: $7,000 a year for 8 years and -$3,000 at year 9. The project will incur an initial cost of $30,000. The cost of capital for the project is 12%.

a. What is the projects NPV?

b. What is the projects profitability index?

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