Question: Note: Attempt all question. Give formulas and calculation for each question. (20M) 3. A Project X initially costing $ 250,000 generates following cash flows. If

 Note: Attempt all question. Give formulas and calculation for each question.

Note: Attempt all question. Give formulas and calculation for each question. (20M) 3. A Project X initially costing $ 250,000 generates following cash flows. If the cost of capital is 12%, calculate a) Net Present Value b) Profitability Index of the project Year Cash flow 90,000 80,000 70,000 60,000 1!! V N 50,000 Whether the project should be accepted or not? (8M)

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