eBook Net Present Value A project has estimated annual net cash flows of $12,500 for five years and is estimated to cost $47,500. Assume a minimum acceptable rate of return of 15%. Use the Present Value of an Annuity of $1 at Compound Interest table below. Present Value of an Annuity of $1 at Compound Interest Year 10% 15% 20% 0.909 0.893 0.870 0.833 1.736 1.690 1.626 1.528 2.487 2.402 2.283 2.106 3.170 3.037 2.855 2.589 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3.326 5.582 4.868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.031 4.772 10 6.145 7.360 4.192 5.650 5.019 Determine (1) the net present value of the project and (2) the present value index. If required, use the minus sign to indicate a negative net present value. 41,913 X Net present value of the project (round to the nearest dollar) Present value index (rounded to two decimal places) 1 2 3 4 5 6 7 8 6% 0.943 1.833 2.673 3.465 Show Me 4.212 12% 0.88

Net Present Value A project has estimated annual net cash flows of $12,500 for five years and is estimated to cost 547,500 , Assume a minimum acceptable rate of return of 15%. Use the Present Value of an Annuity of $1 at Compound Interest table below. Net present value of the project (round to the nearest dollar) Present value index (rounded to two decimal places) Went value indek. If required, use the mirus sign to indicate a negotive net present value