Aerospace Dynamics will invest $220,000 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.) Calculate your final answer using the formula and financial calculator methods.

Year        Cash Flow
  1               $ 72,000
  2                88,000
  3               76,000
  4               (88,000)
  5               162,000

a. What is the net present value of the project?

b. Should the project be undertaken?

Answer rating: 100% (QA)

a What is the net present value of the project The net present value of the project is 1130158 Using ... View the full answer