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Aerospace Dynamics will invest $150,000 in a project that will produce the following cash flows. The cost of capital is 10 percent. (Note that the

Aerospace Dynamics will invest $150,000 in a project that will produce the following cash flows. The cost of capital is 10 percent. (Note that the fourth years cash flow is negative.) Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Year Cash Flow
1 $ 45,000
2 57,000
3 65,000
4 (48,000 )
5 140,000

a. What is the net present value of the project?

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