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)