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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Aerospace Dynamics will invest $124,000 in a project that will produce the following cash flows. The cost of capital is 13 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.
 Â
| Year | Cash Flow | |||
| 1 | Â | $ | 45,000 | Â |
| 2 | Â | Â | 57,000 | Â |
| 3 | Â | Â | 51,000 | Â |
| 4 | Â | Â | (48,000 | ) |
| 5 | Â | Â | 80,000 | Â |
| Â | ||||
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.)
Net present value=
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