A factory costs $400,000. You forecast that it will produce cash inflows of $120,000 in year 1, $180,000 in year 2, and $300,000 in year 3. The discount rate is 12%. a. What is the value of the factory? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Value of the factory b. Is the factory a good investment? Yes No

A factory costs $400,000. You forecast that it will produce cash inflows of $120,000 in year 1,$180,000 in year 2 , and $300,000 in year 3 . The discount rate is 12%. 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