Question
A factory costs $280,000. You forecast that it will produce cash inflows of $80,000 in year 1, $140,000 in year 2, and $220,000 in year
A factory costs $280,000. You forecast that it will produce cash inflows of $80,000 in year 1, $140,000 in year 2, and $220,000 in year 3. The discount rate is 12%.
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?
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Yes
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No
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Corporate Financial Distress A Study Of The Italian Manufacturing Industry
Authors: Matteo Pozzoli , Francesco Paolone
1st Edition
3319673548,3319673556
