Question: (20 points) A five-year financial project has estimates off net cash flows shown in the following table: Year Net Cash Flow 1 $60,000 2 $55,000
- (20 points) A five-year financial project has estimates off net cash flows shown in the following table:
| Year | Net Cash Flow |
| 1 | $60,000 |
| 2 | $55,000 |
| 3 | $65,000 |
| 4 | $80,000 |
| 5 | $90,000 |
It will cost $75,000 to implement the project and all of the $75,000 must be invested at the beginning of the project. After the fifth year, the project will have no residual value. Conduct a discounted cash flow calculation using a 20% hurdle rate with no inflation. What is the discounted profitability index for the project? Submit one Excel spreadsheet with all your work for this problem.
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