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%. 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 $90,000 for 3 years and is estimated to cost $250,000. 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 $90,000 for 3 years and is estimated to cost $250,000. 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 $90,000 for 3