Aerospace Dynamics will invest $158,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. (Note that the fourth yearâs 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 $ 49,000 2 59,000 3 50,000 4 (54,000 ) 5 110,000
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.)
Net present value:
Aerospace Dynamics will invest $158,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. (Note that the fourth yearâs 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 $ 49,000 2 59,000 3 50,000 4 (54,000 ) 5 110,000
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.)
Net present value:
Related questions
| Aerospace Dynamics will invest $135,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. (Note that the fourth yearâs 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 | $ | 46,000 | ||
| 2 | 54,000 | |||
| 3 | 68,000 | |||
| 4 | (53,000 | ) | ||
| 5 | 120,000 | |||
| 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.) |
| Net present value | $ |
| b. | Should the project be undertaken? | ||||
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