Calculate the net present value npv and the profitability


A company is evaluating an investment project whose cost is $ 15,000 and which will generate a cash flow after taxes of $ 12,000 in the first year, $ 5,000 in the second year and $ 7,000 in the third year. The discount rate for the project is 15%. Calculate the net present value (NPV) and the profitability index (PI). Should the investment project be executed or not? Explain why.

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Financial Management: Calculate the net present value npv and the profitability
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