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    Net present value and profitability index of a project

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    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 the project acceptable?

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    Solution Preview

    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 the project acceptable?

    Since the cash flows are the same over the years ...

    Solution Summary

    The solution calculates the net present value and profitability index of a project

    $2.19

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