What is the net present value of the project

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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.) Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

YearCash Flow

1 $47,000  .909

2  53,000  .826

3  51,000  .751

4 (48,000) .683

5  145,000  .621

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.)

Is the answer (3937.00)

Reference no: EM131948384

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