# NPV,IRR & PI

**Tutor description**

2.Find the NPV and PI of an annuity that pays $500 per year for eight years and costs $2,500. Assume a discount rate of 6 percent. $500*8)*0.94^8-2,500 ($4,000)*0.6095-2,500 2438-2,500=-$62.00

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