Question: ABC Service can purchase a new assembler for $15,052 that will provide an annual net cash flow of $6,000 per year for five years. 1-

ABC Service can purchase a new assembler for $15,052 that will provide an annual net cash flow of $6,000 per year for five years. 1- Calculate the NPV of the assembler if the required rate of return is 12%. Show calculation. [Would you accept/reject a project based on NPV decision criteria? Why? ] 3- Based on NPV calculated in part A, determine Profitability Index (PI). Show calculation. [Would you accept/reject a project based on PI decision criteria? Why? ]

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