Question: Aerospace Dynamics will Invest $200,000 in a project that will produce the following cash flows, The cost of capital is 11 percent. (Note that the

Aerospace Dynamics will Invest $200,000 in a
Aerospace Dynamics will Invest $200,000 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 $ 65,000 80,000 69,000 (80,000) 147,000 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 to 2 decimal places. Net present value b. Should the project be undertaken? O yes O no

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