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Calculate the npv of the investment

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Reference no: EM133056630

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.

A) 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?

Reference no: EM133056630

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