Net Present Value A project has estimated annual net cash flows of $70,000 for four years and is estimated to cost $190,000. Assume a minimum acceptable rate of return of 10%. Use the Present Value of...

Net Present Value

A project has estimated annual net cash flows of $70,000 for four years and is estimated to cost $190,000. Assume a minimum acceptable rate of return of 10%. Use thePresent Value of an Annuity of $1 at Compound Interest table below.

Determine (1) the net present value of the project and (2) the present value index. If required, use the minus sign to indicate a negative net present value.