Ch.26 Interactive HW + video eBook Show Me How Print Item 1. PE.26-01.ALGO Net Present Value 2. PE.26-02.ALGO A project has estimated annual net cash flows of $12,500 for two years and is estimated to cost $30,000. Assume a minimum acceptable rate of return of 20%. Use the Present Value of an Annuity of $1 at Compound Interest table below. . Present Value of an Annuity of $1 at Compound Interest 3. PE.26.03.ALGO Year 6% 10% 12% 15% 20% 4. PE.26-04.ALGO 1 0.943 0.909 0.893 0.870 0.833 5. PE.26-05.ALGO 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 6. EX.26-01.ALGO 4 3.465 3.170 3.037 2.855 2.589 7. EX.26-03.ALGO 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 8. EX.26-04.ALGO 7 5.582 4.868 4.564 4.160 3.605 9. EX.26-05 ALGO 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10. EX.26-07.ALGO 10 7.360 6.145 5.650 5.019 4.192 11. EX.26-09.ALGO 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. 12. EX.26-19.ALGO Net present value of the project (round to the nearest dollar) 10,900 x Present value index (rounded to two decimal places) 1.36 x Feedback Check My Work a. Multiply the present value factor for an annuity of $1 factor for two years and 20% by the annual net cash flow. Subtract the amount to be invested. b. Divide the total present value of the net cash flow by the amount to be invested