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A project has estimated annual net cash flows of $12,500 for one years and is estimated to cost $42,500. Assume a minimum acceptable rate of
A project has estimated annual net cash flows of $12,500 for one years and is estimated to cost $42,500. Assume a minimum acceptable rate of return of 10%. Use the Present Value of an Annuity of $1 at Compound Interest table below. Present Value of an Annuity of $1 at Compound Interest Determine (a) the net present value of the project and (b) the present value index. If required, use the minus sign to indicate a negative net present value. Net present value of the project (round to the nearest dollar) $ Present value index (rounded to two decimal places)
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