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Hamilton Control Systems will invest $69,000 in a temporary project that will generate the following cash inflows: Year 1 2 3 Cash Flow $23,000 36,000
Hamilton Control Systems will invest $69,000 in a temporary project that will generate the following cash inflows: Year 1 2 3 Cash Flow $23,000 36,000 38,000 The firm will also be required to spend $19,000 to close the project at the end of the three years. a. Compute the net present value if the cost of capital is 9 percent. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar. Negative answer should be indicated by a minus sign. Omit $ sign in your response.) NPV -2927 b. Should the investment be undertaken? Yes No
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