Net Present Value A project has estimated annual net cash flows of $6,250 for four years and is estimated to cost $42,500. Assume a minimum acceptable rate of return of 12%. 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 2 3 0.833 1.528 2.106 0.943 1.833 2.673 3.465 4.212 4.917 0.909 1.736 2.487 3.170 3.791 4.355 0.893 1.690 2.402 3.037 3.605 4.111 0.870 1.626 2.283 2.855 3.353 3.785 2.589 2.991 3.326 5.582 4.868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 7.360 6.145 5.650 5.019 4.192 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 $261,415 and provide annual net cash flows of $49,000 for eight 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 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 3.106 3.465 3.170 3.037 2,855 2.589 4.212 3.791 3.605 3.352 2.991 4.917 4.355 4.111 3.784 3.326 5.582 4.868 4.564 4.160 3.605 6.210 5.335 5.759 4.968 5.328 4.487 4.772 3.837 4.031 6.802 7.360 6.145 5.650 5.019 4.192 Determine the internal rate of return for this project, using the Present Value of an Annuity of Si at Compound Interest table shown above. Net Present Value A project has estimated annual net cash flows of $6,250 for four years and is estimated to cost $42,500. Assume a minimum acceptable rate of return of 12%. 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 2 3 0.833 1.528 2.106 0.943 1.833 2.673 3.465 4.212 4.917 0.909 1.736 2.487 3.170 3.791 4.355 0.893 1.690 2.402 3.037 3.605 4.111 0.870 1.626 2.283 2.855 3.353 3.785 2.589 2.991 3.326 5.582 4.868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 7.360 6.145 5.650 5.019 4.192 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 $261,415 and provide annual net cash flows of $49,000 for eight 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 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 3.106 3.465 3.170 3.037 2,855 2.589 4.212 3.791 3.605 3.352 2.991 4.917 4.355 4.111 3.784 3.326 5.582 4.868 4.564 4.160 3.605 6.210 5.335 5.759 4.968 5.328 4.487 4.772 3.837 4.031 6.802 7.360 6.145 5.650 5.019 4.192 Determine the internal rate of return for this project, using the Present Value of an Annuity of Si at Compound Interest table shown above