What is the projects pi, Bill plans to open a self-serve

What is the projects pi

Reference no: EM13256089

Bill plans to open a self-serve grooming center in a storefront. The grooming equipment will cost $385,000, to be paid immediately.

Bill expects after-tax cash inflows of $84,000 annually for seven years, after which he plans to scrap the equipment and retire to the beaches of Nevis. The first cash inflow occurs at the end of the first year. Assume the required return is 13 percent.

What is the project's PI?

Should it be accepted?

Reference no: EM13256089

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