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Aerospace Dynamics will invest $160,000 in a project that will produce the following cash flows. The cost of capital is 10 percent. (Note that the
Aerospace Dynamics will invest $160,000 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 | $ | 49,000 | ||
2 | 60,000 | |||
3 | 70,000 | |||
4 | (51,000 | ) | ||
5 | 150,000 | |||
a. | What is the net present value of the project? |
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