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Aerospace Dynamics will invest $180,000 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 - $ 62,000
2 - 74,000
3 - 68,000
4 - (65,000 )
5 - 140,000
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.)
Aerospace Dynamics will invest $180,000 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 - $ 62,000
2 - 74,000
3 - 68,000
4 - (65,000 )
5 - 140,000
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.)
18 Dec 2021
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Trinidad TremblayLv2
13 Sep 2019
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