Net Present Value A project has estimated annual net cash flows of $12,500 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 10% Year 12% 15% 20% 0.870 0.943 0.909 0.893 0.833 1.833 1.736 1.690 1.626 1.528 2.487 2.673 2.402 2.283 2.106 3.170 3.465 3.037 2.855 2.589 4.212 2.991 3.791 3.605 3.353 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 4.772 6.802 5.759 5.328 4.031 5.019 4.192 10 7.360 6.145 5.650 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 of the project (round to the nearest dollar) Present value index (rounded to two decimal places) Internal Rate of Returm A project is estimated to cost $200,952 and provide annual net cash flows of $36,000 for seven years. Present Value of an Annuity of $1 at Compound Interest Year 10% 12% 15% 20% 0.893 0.870 0.943 0.909 0.833 1.690 1.833 1.736 1.626 1.528 2.402 2.673 2.487 2.283 2.106 3.170 3.037 3.465 2.855 2.589 3.605 4.212 3.791 3.352 2.991 4.355 4.917 4.111 3.784 3.326 5.582 4.868 4.564 4.160 3.605 6.210 4.968 4.487 3.837 5.335 5.759 5.328 6.802 4.772 4.031 7.360 4.192 10 6.145 5.650 5.019 Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above