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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 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 Cash Flow 1 40,000 52,000 52,000 (45,000) 120,000 4 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.) Answer is complete but not entirely correct Net present value 2,149.00 b. Should the project be undertaken? Yes No
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