SECTION B 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 MI 70,000 IV 60,000 50,000 Whether the project should be accepted or not