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  1. business
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  3. a project has estimated annual net cash flows of $

A project has estimated annual net cash flows of $10,000 for three years and is...

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Accounting

A project has estimated annual net cash flows of $10,000 for three years and is estimated to cost $42,500. Assume a minimum acceptable rate of return of 15%. 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%
10.9430.9090.8930.8700.833
21.8331.7361.6901.6261.528
32.6732.4872.4022.2832.106
43.4653.1703.0372.8552.589
54.2123.7913.6053.3522.991
64.9174.3554.1113.7843.326
75.5824.8684.5644.1603.605
86.2105.3354.9684.4873.837
96.8025.7595.3284.7724.031
107.3606.1455.6505.0194.192
Determine (1) the net present value of the project (if required, round to the nearest dollar) and (2) the present value index (rounded to two decimal places). If required, use the minus sign to indicate a negative net present value.
(1) Net present value of the project $fill in the blank 1
(2) Present value index fill in the blank 2

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