Problem $3-$ Net present value

A project has estimated annual net cash flows of $$10,000$ for seven years and is estimated to

cost $$50,000.$ Assume a minimum acceptable rate of return of $10\%.$ Use the Present Value of

an Annuity of $$1$ at Compound Interest table below.

Present Value of an Annuity of $$1$ at Compound

Interest

Determine $($a$)$ the net present value of the project and $($b$)$ the present value index. If required,

use the minus sign to indicate a negative net present value.