Question: Net Present Value A project has estimated annual net cash flows of $5,000 for six years and is estimated to cost $37,500. Assume a minimum
Net Present Value A project has estimated annual net cash flows of $5,000 for six years and is estimated to cost $37,500. Assume a minimum acceptable rate of return of 20%. 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% 12% 15% 20% 6% 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 3.353 2.991 6 4.917 4.355 4.111 3.785 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.BOZ 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Determine (a) the net prezent value of the project and (b) the present value indexi If required, use the minus sign to indicate a negative net present value, Net present value of the project (round to the nearest dollar) Present value index (rounded to two decimal places) Check Me Minch the in
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