Question
(PI calculation)Calculate the PI given the following cash flows if the appropriate required rate of return is 10%. (Make sure to put everything to the
(PI calculation)Calculate the PI given the following cash flows if the appropriate required rate of return is 10%. (Make sure to put everything to the nearest 3 decimal places)
| YEAR | CASH FLOWS | |
| ???0 | minus |
$55 comma 000
| ???1 | ????? 10,000 |
| ???2 | ????? 10,000 |
| ???3 | ????? 10,000 |
| ???4 | ????? 10,000 |
| ???5 | ????? 10,000 |
| ???6 | ????? 10, 000 |
Should the project be accepted?
Without calculating the NPV,do you think it would be positive or negative? Why?
YEAR CASH FLOWS 0 -$55,000 1 10000 2 10000 3 10000 4 10000 5 10000 6 10000 Step by Step Solution
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
7th Edition
0273658492, 978-0273658498
