Net Present Value

A project has estimated annual net cash flows of $22,000 for five years and is estimated to cost $63,162. Assume a minimum acceptable rate of return of 20%. Use the Present Value of an Annuity of $1 at Compound Interest table below.

Net Present Value A project has estimated annual net cash flows of $22,000 for five years and is estimated to cost $63,162. 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 1096 15% 0.870 1.626 2.283 3.465 3.170 3.037 2.855 3.352 3.784 4.160 4.487 4.772 5.019 Year 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 696 12% 0.943 0.909 0.893 1.833 1.736 1.690 2.673 2.487 2.402 2 4 6 7 8 9 10 4.212 3.791 3.605 4.917 4.355 4.111 5.582 4.868 4.564 4.968 5.328 7.360 6.145 5.650 6.210 5.335 6.802 5.759 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 Check My Work (2 remaining)