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New Tab has estimated annual net cash flows of $12,500 for 5 years and is estimated to cost $35,000. Assume a minimum acceptable rate of
New Tab has estimated annual net cash flows of $12,500 for 5 years and is estimated to cost $35,000. Assume a minimum acceptable rate of return of 6%. Use the Present Value of an Annuity of $1 at Compound Interest table below. 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
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