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A factory costs $270,000. You forecast that it will produce cash Inflows of $75,000 in year 1, $135,000 in year 2, and $210,000 in year
A factory costs $270,000. You forecast that it will produce cash Inflows of $75,000 in year 1, $135,000 in year 2, and $210,000 in year 3. The discount rate is 11%. a. What is the value of the factory? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Value of the factory b. Is the factory a good Investment? O Yes O No Old Time Savings Bank pays 4% Interest on Its savings accounts. If you deposit $2,800 in the bank and leave it there: (Do not round Intermedlate calculations. Round your answers to 2 decimal places.) a. How much interest will you earn in the first year? First year interest b. How much Interest will you earn in the second year? Second year interest c. How much interest wil you earn in the 10th year? Tenth year interest
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