Aerospace dynamics will invest 186000 in a project that


Question: Aerospace Dynamics will invest $186,000 in a project that will produce the following cash flows. The cost of capital is 10 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                 $47,000

2                  53,000

3                  51,000

4                 (48,000)

5                 145,000

a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.)

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Finance Basics: Aerospace dynamics will invest 186000 in a project that
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