Q1) 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
Q2) Discuss your thoughts about the unique staffing, training, and motivational challenges that may be encountered within the typical production operation...an automobile plant for example.