Question: Problem 1 2 - 1 4 ( Algo ) Net present value method [ LO 1 2 - 4 ] Aerospace Dynamics will invest $

Problem 12-14(Algo) Net present value method [LO12-4]
Aerospace Dynamics will invest $155,000 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.
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?
yes
no
Problem 12-14(Algo) Net present value method [LO12-4] Aerospace Dynamics will invest

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