Calculate the PI given the following cash flows if the appropriate required rate of return is 10%.
YEAR CASH FLOWS
0.......... -$ 55,000
1.......... 10,000
2.......... 10,000
3.......... 10,000
4.......... 10,000
5.......... 10,000
6.......... 10,000
Should the project be accepted? Without calculating the NPV, do you think it would be positive or negative? Why?