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Project producing the following cash flows

Question: Aerospace Dynamics will invest $110,000 in a project that will produce the following cash flows. The cost of capital is 13 percent. Should the project be undertaken? (Note that the fourth year's cash flow is negative.) Why or why not?

Year Cash Flow
1 $36,000
2 44,000
3 38,000
4 (44,000)
5 81,000

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Project Management: Project producing the following cash flows

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