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Skyline Corporation will invest $250.000 in a project that will not begin to produce returns until the end of the 3 rd year From the

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Skyline Corporation will invest $250.000 in a project that will not begin to produce returns until the end of the 3 rd year From the end of the 3rd year until the end of the 12 th year (10 periods), the annual cash flow will be $54,000. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Calculate the net present value if the cost of capital is 13 percent. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places. b. Should the project be undertaken? No Preseat value of 51,PV/F PV=5FVCl+i)n] Present valae of an annaity of 51. PV PVx=A[1(1:(1+1)n)]i

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