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Aerospace Dynamics will invest $110,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. (Note that the

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Aerospace Dynamics will invest $110,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. (Note that the fourth year's cash flow is negative. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year 1 2 3 4 5 Cash Flow $ 36,000 44,000 38,000 (44,000) 81,000 a. What is the net present value of the project? (Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value b. Should the project be undertaken? O Yes O No

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