FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A factory costs $330,000. You forecast that it will produce cash inflows of $105,000 in year 1, $165,000 in year 2, and $270,000 in year

image text in transcribed

A factory costs $330,000. You forecast that it will produce cash inflows of $105,000 in year 1, $165,000 in year 2, and $270,000 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? Yes O No

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Futures Markets

Understanding Futures Markets

Authors: Robert Kolb, James Overdahl

6th Edition

1405134038, 9781405134033

More Books

Students also viewed these Finance questions

Question

★★★★★
Sally Rice is unable to reconcile the bank balance at January 31. Sallys reconciliation is shown here. Cash balance per bank........... $3,677.20 Add: NSF check............ 450.00 Less: Bank service...

Answered: 1 week ago

Question

★★★★★
A tank car is stopped by two spring bumpers A and B, having a stiffness of K A = 15(10) lb/ft and k B = 20(10) lb/ft, respectively. Bumper A is attached to the car, whereas bumper B is attached to...

Answered: 1 week ago

Question

★★★★★
70. Let N denote the number of cycles that result in the match problem. (a) Let Mn = E[N], and derive an equation for Mn in terms of M1,..., Mn1. (b) Let Cj denote the size of the cycle that contains...

Answered: 1 week ago

Question

★★★★★
Barbieri Co. makes aluminum canoes. The companys June 2010 costs for material and labor were as follows: Material costs Janitorial supplies ................. $1,800 Chrome rivets to assemble canoes...

Answered: 1 week ago

Question

★★★★★
Using K-maps, obtain the simplified product-of-sums and sum-of-products expressions for the following Boolean functions: a). b). F(x, y,2)-(3,5,6,7) d(0, 1,2) F(w,x, y, z) (0,1,2,3,7,8, 10)+...

Answered: 1 week ago

Question

★★★★★
Give notes for Scheduling Algorithms in Operating System.

Answered: 1 week ago

Question

★★★★★
Which of the following elements is used for vulcanizing rubber? [A] Chlorine [B] Phosphorus [C] Sulphur [D] Bromine

Answered: 1 week ago

Question

★★★★★
Which of the following soils have a high content of aluminium and iron oxide? [A] meadow soil [B] podzol soil [C] chernozem soil [D] pedalfer soil

Answered: 1 week ago

Question

★★★★★
What is Accounting?

Answered: 1 week ago

Question

★★★★★
Define organisation chart

Answered: 1 week ago

Question

★★★★★
What are the advantages of planning ?

Answered: 1 week ago

Question

★★★★★
The ALT principles of being critical stands for: a Argument, literature, theory. b Assert, list, trustworthiness. c Analysis, logic, timeliness. d Argument, logic, trustworthiness.

Answered: 1 week ago

Question

★★★★★
A systematic literature search involves: a Identifying, reviewing and analysing sources using specific criteria. b Identifying the systems that are most important to your research topic. c...

Answered: 1 week ago

Question

★★★★★
For the purpose of your literature review, which of the following would be classed as an official document? a An organisations CSR policy. b A journal article sponsored by a professional body. c A...

Answered: 1 week ago

Previous Question Next Question