What is the net present value of the project

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Question: 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 year's 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.)

b. Should the project be undertaken?

Reference no: EM131932854

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