Net Present Value A project has estimated annual net cash flows of $12,500 for five years and is estimated to cost $32,500 Assume a minimum acceptable rate of return of 6%. 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% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 3.605 4.564 4.160 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 10 5.019 4.192 7.360 6.145 5.650 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) Present value index (rounded to two decimal places) Internal Rate of Return A project is estimated to cost $303,264 and provide annual net cash flows of $72,000 for five years Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.352 2.991 4.917 4.355 3.784 4.111 3.326 S.582 4.868 4.564 4.160 3.605 6.210 5.335 4.968 3.837 4,487 6.802 5.759 5.328 4.772 4.031 10 7.360 4.192 6.145 5.650 5.019 Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above