Aerospace Dynamics will invest $156,000 in a project that will produce the following cash flows. The cost of capital is 11 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 $ 52,000 2 62,000 3 56,000 4 (55,000 ) 5 120,000

a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.)

b. Should the project be undertaken? multiple choice Yes No