Calculate the net present value and profitability index of a project with a net investment of $20,000 and expected net cash flows of $3,000 a year for 10 years if the project's required return is 12 percent. Is this project acceptable?© BrainMass Inc. brainmass.com June 3, 2020, 9:18 pm ad1c9bdddf
The NPV is calculated as
PV of cash inflows - initial investment
Since the cash inflows are an annuity, we use ...
The solution explains how to calculate the net present value and profitability index and determine if the project should be accepted