Aerotech dynamic will invest 110,000 in a project that will produce the followin

Question

Aerotech dynamic will invest 110,000 in a project that will produce the following cash flows. the cost of capital is 11 percent. should the project be undertaken? please show equation and how you got your answer. thank you

P.S!!! please show me the equation you used to get the answer and i need you to elaborate on it so i can learn how to re-do it on my own. i already have the answer to this question, i need someone to show me the step by step and what to multiply with what to get the answer, Show your work please, this is the second time i post this question since the last one did not show me how to solve on my own. Thank you.

year cash flow 1 25,000 2 (4,000) 3 90,000 4 (12,000) 5 28,000

Explanation / Answer

22525

Present Value of Cashflow = 93763

Present Value of Investment = 110,000

NPV of Project = -16,237

Since, NPV of the project is negative then we should not accept the project.

Year Cash Flow PV at 11% Present Value 1 25000 0.901

22525

2 (4000) 0.812 (3248) 3 90000 0.731 65790 4 (12000) 0.659 (7908) 5 28000 0.593 16604

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