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A project has estimated annual net cash flows of $80,000 for seven years and is estimated to cost $325,000. Assume a minimum acceptable rate of

"A project has estimated annual net cash flows of $80,000 for seven years and is estimated to cost $325,000. Assume a minimum acceptable rate of return of 6%. Using the present value of an annuity table appearing in Exhibit 5 of this chapter, determine (a) the net present value of the project and (b) the present value index, rounded to two decimal places"

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