Question
A factory costs $310,000. You forecast that it will produce cash inflows of $95,000 in year 1, $155,000 in year 2, and $250,000 in year
A factory costs $310,000. You forecast that it will produce cash inflows of $95,000 in year 1, $155,000 in year 2, and $250,000 in year 3. The discount rate is 12%.
a. What is the value of the factory?
b. Is the factory a good investment?
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Financial Intelligence For IT Professionals
Authors: Karen Berman, Joe Knight, John Case
1st Edition
1422119149, 9781422119143
