Question: 10.00 points Problem 12-16 Net present value method [LO4] Skyline Corp. will invest $290,000 in a project that will not begin to produce returns until
10.00 points Problem 12-16 Net present value method [LO4] Skyline Corp. will invest $290,000 in a project that will not begin to produce returns until the end of the 4t year. From the end of the 4th year until the end of the 12th year (9 periods), the annual cash flow will b $64,000. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Calculate the net present value if the cost of capital is 9 percent. (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? O Yes O No Hints References eBook & Resources Hint#1 cti MacBook Air F1 F2 F3 FS
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