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A project has annual net cash flows of $80,000 for seven years. The cost of the project is $325,000. The required rate of return is

A project has annual net cash flows of $80,000 for seven years. The cost of the project is $325,000. The required rate of return is 6%. Please use the table below to calculate the projects:

Present value index

Present Value of an Annuity

year

6%

10%

12%

15%

20%

1

.943

.909

.893

.870

.833

2

1.833

1.736

1.690

1.626

1.528

3

2.673

2.487

2.402

2.283

2.106

4

3.465

3.170

3.037

2.855

2.589

5

4.212

3.791

3.605

3.353

2.991

6

4.917

4.355

4.111

3.785

3.326

7

5.582

4.868

4.564

4.160

3.605

8

6.210

5.335

4.968

4.487

3.837

9

6.802

5.759

5.328

4.772

4.031

10

7.360

6.145

5.650

5.019

4.192

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