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Aerospace Dynamics will invest $130,000 in a project that will produce the following cash flows. The cost of capital is 11 pe
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Answer #1

Net present value=Present value of all cash flows

1.
=-130000+40000/1.11+50000/1.11^2+57000/1.11^3-54000/1.11^4+110000/1.11^5
=18003.23992

2.
Yes as NPV is positive

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