Net Present Value A project has estimated annual net cash flows of $5,000 for two years and is estimated to cost $50,000. 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 Year 6% 10% 12% 15% 20% 0.893 0.870 0.833 0.943 0.909 2 1.833 1.736 2.673 2.487 3.465 3.170 5 4.212 3.791 6 4.917 4.355 5.582 4.868 6.210 5.335 6 .802 5.759 107.3606 .145 1.690 1.626 1.528 2.402 2.283 2.106 3.037 2.855 2.589 3.605 3.353 2.991 4.111 3.785 3.326 4.564 4.160 3.605 4.968 4.487 3.837 5.328 4.772 4.031 5.6505.0194 .192 9 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. Net present value of the project (round to the nearest dollar) $ -42,360 Present value index (rounded to two decimal places)