A project has estimated annual cash flows of $95,000 for four years and is estimated to cost $260,000. Assume a minimum acceptable rate of return of 10%. Using the following tables determine the
(a) net present value of the project and
(b) the present value index, rounded to two decimal places.Below is a table for the present value of $1 at compound interest. Below is a table for the present value of an annuity of $1 at compound interest.

Question

A project has estimated annual cash flows of $95,000 for four years and is estimated to cost $260,000. Assume a minimum acceptable rate of return of 10%. Using the following tables determine the 
(a) net present value of the project and 
(b) the present value index, rounded to two decimal places.Below is a table for the present value of $1 at compound interest.​  Below is a table for the present value of an annuity of $1 at compound interest.

Quizplus · Accepted Answer

The Answer of A project has estimated annual cash flows of $95,000 for four years and is estimated to cost $260,000. Assume a minimum acceptable rate of return of 10%. Using the following tables determine the 
(a) net present value of the project and 
(b) the present value index, rounded to two decimal places.Below is a table for the present value of $1 at compound interest.​  Below is a table for the present value of an annuity of $1 at compound interest.

A Project Has Estimated Annual Cash Flows of $95,000 for Four