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A project has estimated annual net cash flows of $82,000 for five years and is estimated to cost $259,000. Assume a minimum acceptable rate of
A project has estimated annual net cash flows of $82,000 for five years and is estimated to cost $259,000. Assume a minimum acceptable rate of return of 12%. Using a present value factor of 3.605, determine (1) the net present value of the project and (2) the present value index, rounded to two decimal places.
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