A$)$

ABC Service can purchase a new assembler for $$15,052$ that will provide an annual net cash flow of $$6,000$ per year for five years. Calculate the NPV of the assembler if the required rate of return is $12\%.$ Show calculation. Would you accept$/$reject a project based on NPV decision criteria? why?

B$)$

Based on NPV calculated in part A$,$ determine profitability index $($PI$).$ Show calculation. Would you accept$/$reject a project based on PI decision criteria? Why?