Aerospace Dynamics will invest $155,000 in a project that will produce the following cash flows. The cost of capital is 11 percent (Note hat 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 2 $51,000 62,000 3 54,000 4 (62,000) 5 114,000 a. What is the net present value of the project? Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer t 2 decimal places. Net present value

Aerospace Dynamics will invest $155,000 in a project that will produce the following cash flows. The cost of capital is 11 percent (Note hat 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 2 $51,000 62,000 3 54,000 4 (62,000) 5 114,000 a. What is the net present value of the project? Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer t 2 decimal places. Net present value

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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