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Aerospace Dynamics will invest $196,000 in a project that will produce the following cash flows. The cost of capital is 10 percent. (Note that the
Aerospace Dynamics will invest $196,000 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 60,000 3 54,000 4 (51,000) 5 160,000 What is the net present value of the project?
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