Calculate the net present value and the present value index

Reference no: EM132478419

This project requires an initial investment of $170,000. The project will have a life of 6 years. Annual revenues associated with the project will be $130,000 and expenses associated with the project will be $35,000.This project requires an initial investment of $135,000. The project will have a life of 4 years. Annual revenues associated with the project will be $113,000 and expenses associated with the project will be $60,000.

Question 1: Calculate the net present value and the present value index for each project.

Question 2: Present Value of $1 (a single sum) at Compound Interest.

Question 3: Present Value of an Annuity of $1 at Compound Interest.

Reference no: EM132478419

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