Question
2) A factory costs $260,000. You forecast that it will produce cash inflows of $70,000 in year 1, $130,000 in year 2, and $200,000 in
2)
A factory costs $260,000. You forecast that it will produce cash inflows of $70,000 in year 1, $130,000 in year 2, and $200,000 in year 3. The discount rate is 10%.
a. What is the value of the factory? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. Is the factory a good investment?
-
Yes
-
No
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Education Finance Specialist II
Authors: National Learning Corporation
1st Edition
0837347432, 978-0837347431
