Question: Problem 12-14 (Algo) Net present value method [LO12-4] Aerospace Dynamics will invest $145,000 in a project that will produce the following cash flows. The cost

Problem 12-14 (Algo) Net present value method [LO12-4]

Aerospace Dynamics will invest $145,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. (Note that the fourth years cash flow is negative.) Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

YearCash Flow1$ 47,000258,000350,0004(58,000)5107,000

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.

Should the project be undertaken?

multiple choice

yes

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