Question: Ql: A project with the cost ($25000)and with the following cash flows: Year Cash Flow I 5500 8500 3 12,000 8000 6000 1. Calculate

Ql: A project with the cost ($25000)and with the following cash flows:

Ql: A project with the cost ($25000)and with the following cash flows: Year Cash Flow I 5500 8500 3 12,000 8000 6000 1. Calculate the net present value, should the project be accepted if the discount rate is 10% ? Why or why not? 2. Calculate the profitability index (PI), should the project be accepted if the discount rate is 10% ? Why or why not? 3. Calculate the payback period rule, should the project be accepted if the project management determine three years cutoff period? Why or why not?

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Year Cash Inflow Cumulative value of cash inflow 1 5500 550011 5000 2 8500 850011 2 702479 3 12000 1... View full answer

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