A project has estimated annual cash flows of $90,000 for 3 years and is estimated...

90.2K

Verified Solution

Question

Accounting

image
image
A project has estimated annual cash flows of $90,000 for 3 years and is estimated to cost $250,000. Assume a minimum acceptable rate of return of 10% Present Value of si at Compound Interest Year 6% 12% 10% 0.909 1 0.943 0.893 2 0.797 3 0.826 0.751 0.890 0.840 0.792 0.747 4 0.683 0.712 0.636 0.567 5 0.621 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 1 0.909 0.943 1.833 1.736 2.673 0.893 1.695 2.402 3,037 2.487 4 3,465 3.170 3.791 5 4.212 3.605 Use the tables above. Use the tables above. a. Determine the net present value of the project. Enter negative values as negative numbers. b. Determine the present value index, Round your answer to two decimal places

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students