Question $1$

$5$ pts

THIS PROBLEM HAS $2$ QUESTIONS. EACH QUESTION HAS $4$ POSSIBLE ANSWERS. THERE IS A DROPDOWN MENU FOR EACH QUESTION.

A project requires an initial investment of $$500,000($at $t=0)$ and is expected to generate cash flows of $$150,000$ per year for the next $5$ years $(t=1$ to $t=5).$ The present value of the $5$ positive cash flows is $$490,000.$ The firm has a cost of capital of $16\mathrm{.}10$ percent. Strould this project be accepted, and why?

Question $1$: Estimate the NPV $$ and decide if the project should be accepted.

Question $2$: Estimate the P $$ and decide if the project should be accepted.