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 $$240,000($at $t=0)$ and is expected to generate cash flows of $$90,000$ per year for the next $5$ years to $t=5.$ The present value of the $5$ positive cash flows is $$294,000.$ The firm has a cost of capital of $16\mathrm{.}10$ percent. Should this project be accepted, and why?

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

NPV $=$$$50,000>0,$ accept

NPV $=-$$ reject

NPV $=$$$58,000>0,$ accept

Question $2$: Estimate the PI

NPV $=$$$54,000>0,$ accept nd decide if the project should be accepted.