What is the net present value of the project

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Reference no: EM131026207

Altman Hydraulic Corporation will invest $135,000 in a project that will produce the cash flow shown below. The cost of capital is 11 percent. (Note that the third year's cash flow is negative.) Use Appendix B. 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? (Round "PV Factor" to 3 decimal places. Round intermediate and final answer to the nearest dollar amount. Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.) Net present value $ (b) Should the project be undertaken? Yes

Reference no: EM131026207

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