Question: Please include solution. Thank you! Present Value A project has estimated annual net cash flows of $11,250 for four years and is estimated to a
Present Value A project has estimated annual net cash flows of $11,250 for four years and is estimated to a minimum acceptable rate of return of 12%. Use the Present Value of an Annuity of Interest table below. cost $37,500. Assume $1 at Compound Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.352 2.991 6 4.917 4.355 4.111 3.784 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Determine (1) the net present value of the project (if required, round to the nearest dollar) and (2) the dex (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 2 more Check My Work uses remaining - 401, = 1460.5
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