Question: Nickleby Ltd. is considering a project that will require an initial outlay of $30,000 and is expected to generate after-tax cash flows of $5,000 for

Nickleby Ltd. is considering a project that will require an initial outlay of $30,000 and is expected to generate after-tax cash flows of $5,000 for the next 9 years and then $6,000 in year 10. Estimate Nickelbys NPV given a 12% discount rate. What is the Profitability Index for the Nickelby project in more questions 2 above?

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