A Project Has Estimated Annual Cash Flows of $90,000 for 3

question 109

Essay

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.
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Below is a table for the present value of an annuity of $1 at compound interest.

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Definitions:

Productivity

The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.

Morale

The feelings of enthusiasm and loyalty that a person or group has about a task or job.

Dual-income Families

Households in which both partners work and contribute financially, often to meet the family's higher living expenses or to achieve financial goals.

Commuter Marriage

A marital arrangement where spouses live apart, typically due to work obligations, and commute to spend time together.