Question
A factory costs $320,000. You forecast that it will produce cash inflows of $100,000 in year 1, $160,000 in year 2, and $260,000 in year
A factory costs $320,000. You forecast that it will produce cash inflows of $100,000 in year 1, $160,000 in year 2, and $260,000 in year 3. The discount rate is 10%.
a. What is the value of the factory?
Note: 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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Financial Accounting Theory
Authors: William R. Scott
7th edition
132984660, 978-0132984669
