Aerospace Dynamics will invest $110,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. Should the project be taken? I need to know how to do this step by step. (The fourth year's cash flow is negative).
Year 1: $36,000
Year 2: $44000
Year 3: $38000
Year 4: -$44000
Year 5: $81000
Aerospace Dynamics will invest $110,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. Should the project be taken? I need to know how to do this step by step. (The fourth year's cash flow is negative).
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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You have the following information on a project's cash flows. The cost of capital is 11%.
| Year | Cash flows |
| 0 | -$137,000 |
| 1 | 33,000 |
| 2 | 33,000 |
| 3 | 36,000 |
| 4 | 36,000 |
| 5 | 65,000 |
The NPV of the project is $
(round it to two decimal places); the IRR is
percent (round it to two decimal places); the payback is
years (round it to two decimal places).
