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Capital budgeting Year 0 1 2 3 4 5 Cash Flow -$2,500 1.500 1,700 1,000 1.000 1.000 Calculate the NPV and PI for the expansion

Capital budgeting
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Year 0 1 2 3 4 5 Cash Flow -$2,500 1.500 1,700 1,000 1.000 1.000 Calculate the NPV and PI for the expansion project. Present Value Year 0 1 OWN Cash Flow -$2,500 1,500 1,700 1,000 1.000 1.000 3 4 NPV 6. You are considering building a shopping mall. The initial investment for the mall is si million. The cash flows are $500,000 for Year 1, $400,000 for Year 2, $300,000 for Year 3, and $100,000 for Year 4. What are the NPV and PI of the project if the cost of capital is 10%? 0 K 10% -1000 3 300 500 400 100

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