1. An investment opportunity costing $75,000 is expected to yield net cash flows of $23,000 annually over five years. The NPV of the investment at a discount rate of 14% would be

2. An investment opportunity costing $55,000 is expected to yield net cash flows of $22,000 annually for five years. The NPV of the investment at a discount rate of 12% would be

3. An investment opportunity costing $180,000 is expected to yield net cash flows of $60,000 annually for five years.

a.Find the NPV of the investment at a discount rate of 12%

b. Does this project appear to be acceptable? Why?

c.Calculate the profitability index for the project.