Question
Assume the initial investment of the venture in an aircraft: USD $387,000 This aircraft investment produces a cash flow of USD $47,000 at the end
This aircraft investment produces a cash flow of USD $47,000 at the end of each year for 5 years.
The total cash flow received over the four-year period is USD $235,000. The discount rate 10% is applied.
Please calculate the NPV of the investment. (Please use the Round it to the nearest hundredth)
B) Based on the information in part A and your answer, should the company invest in the venture? Why, or why not?
Step by Step Solution
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Elementary Statistics A Step By Step Approach
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73386103, 978-0073386102
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