Firm is considering project that has an initial investment

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A firm is considering a project that has an initial investment of $140,000 and is expected to produce cash inflows of $26,250 per year for 10 years. The firm’s cost of capital is 10.3%.

What is the project’s NPV? Based on this, should the project be accepted? What is the project’s PI? Based on this, should the project be accepted? Show work.

Reference no: EM131348603

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