Question: A Project costs ? 60,000 and is expected to generate cash inflows as: Calculate Net Present Value and Profitability Index. Comment whether project should be

A Project costs ? 60,000 and is expected to generate cash inflows as:

Year Cash inflows() 1 10,000 12,000 15,000 18,000 20,000 22,000

Calculate Net Present Value and Profitability Index. Comment whether project should be accepted or not. Assume cost of capital is 10%. Enumerate the steps of calculation of NPV.

Year 1 2 3 4 5 6 Cash inflows(3) 10,000 12,000 15,000 18,000 20,000 22,000

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