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4 11 points Hamilton Control Systems will Invest $65,000 in a temporary project that will generate the following cash inflows: Year 1 2 3
4 11 points Hamilton Control Systems will Invest $65,000 in a temporary project that will generate the following cash inflows: Year 1 2 3 Cash Flow $24,000 37,000 34,000 The firm will also be required to spend $17,000 to close the project at the end of the three years. a. Compute the net present value if the cost of capital is 12 percent. (Do not round Intermediate calculations. Round the final answer to the nearest whole dollar. Negative answer should be Indicated by a minus sign. Omit $ sign in your response.) NPV $ -6875 b. Should the Investment be undertaken? Yes No
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