Question: Net Present Value A project has estimated annual net cash flows of $15,000 for eight years and is estimated to cost $45,000. Assume a minimum
Net Present Value A project has estimated annual net cash flows of $15,000 for eight years and is estimated to cost $45,000. 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 Annuitv of $1 at Combound Interest Determine (a) the net present value of the project and (b) the present value index. If required, use the minus sign to indicate a negative net present value. Net Present Value A project has estimated annual net cash flows of $15,000 for eight years and is estimated to cost $45,000. 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 Annuitv of $1 at Combound Interest Determine (a) the net present value of the project and (b) the present value index. If required, use the minus sign to indicate a negative net present value
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