Question: Net present value = present value of cash inflows - present value Outflows = 2500*1/(1+10%)^1+1500*1/(1+10%)^2+1800*1/(1+10%)^3-4000 = $ 864.76 Answer = $ 864.76 Refer to the

Net present value = present value of cash inflows - present value Outflows

= 2500*1/(1+10%)^1+1500*1/(1+10%)^2+1800*1/(1+10%)^3-4000

= $ 864.76

Answer = $ 864.76

Refer to the problem given in Q9, use your analytical skills to estimate the profitability Index for each project.

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