Question
A project has estimated annual net cash flows of $6,800 for five years and is estimated to cost $23,125. Assume a minimum acceptable rate of
A project has estimated annual net cash flows of $6,800 for five years and is estimated to cost $23,125. Assume a minimum acceptable rate of return of 12%. Determine (1) the net present value of the project and (2) thepresent value index.
(1) Net present value of the project (rounded to the nearest dollar)$(2) Present value index (rounded to two decimal places)
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Financial and Managerial Accounting
Authors: Horngren, Harrison, Oliver
3rd Edition
978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978
