Assume the initial investment of the venture in an aircraft: USD $387,000  

This aircraft investment produces a cash flow of USD $47,000 at the end of each year for 5 years.
The total cash flow received over the four-year period is USD $235,000. The discount rate 10% is applied.

 
Please calculate the NPV of the investment. (Please use the Round it to the nearest hundredth)

B)     Based on the information in part A and your answer, should the company invest in the venture? Why, or why not?

Answer rating: 100% (QA)

A To calculate the NPV of the investment we need to discount each of the cash flows to the present v... View the full answer