Net Present Value A project has estimated annual net cash flows of $53,000 for nine years and is estimated to cost $374,909 Assume a minimum acceptable rate of return of 6 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 6 10 12 15 20 1 0 943 0 909 0 893 0 870 0 833 2 1 833 1 736 1 690 1 626 1 528 3 2 673 2 487 2 402 2 283 2 106 4 3 465 3 170 3 037 2 855 2 589 5 4 212 3 791 3 605 3 352 2 991 6 4 917 4 355 4 111 3 784 3 326 7 5 582 4 868 4 564 4 160 3 605 8 6 210 5 335 4 968 4 487 3 837 9 6 802 5 759 5 328 4 772 4 031 10 7 360 6 145 5 650 5 019 4 192 Determine (1) the net present value of the project (if required, round to the nearest dollar) and (2) the present value index (rounded to two decimal places) If required, use the minus sign to indicate a negative net present value (1) Net present value of the project $ (2) Present value index

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Question: Net Present Value A project has estimated annual net cash flows of $53,000 for nine years and is estimated to cost $374,909. Assume a minimum

Net Present Value

A project has estimated annual net cash flows of $53,000 for nine years and is estimated to cost $374,909. Assume a minimum acceptable rate of return of 6%. 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	6%	10%	12%	15%	20%
1	0.943	0.909	0.893	0.870	0.833
2	1.833	1.736	1.690	1.626	1.528
3	2.673	2.487	2.402	2.283	2.106
4	3.465	3.170	3.037	2.855	2.589
5	4.212	3.791	3.605	3.352	2.991
6	4.917	4.355	4.111	3.784	3.326
7	5.582	4.868	4.564	4.160	3.605
8	6.210	5.335	4.968	4.487	3.837
9	6.802	5.759	5.328	4.772	4.031
10	7.360	6.145	5.650	5.019	4.192

Determine (1) the net present value of the project (if required, round to the nearest dollar) and (2) the present value index (rounded to two decimal places). If required, use the minus sign to indicate a negative net present value.

(1) Net present value of the project	$
(2) Present value index

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