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A factory costs $410,000. You forecast that it will produce cash inflows of $125,000 in year 1, $185,000 in year 2, and $310,000 in year

A factory costs $410,000. You forecast that it will produce cash inflows of $125,000 in year 1, $185,000 in year 2, and $310,000 in year 3. The discount rate is 11%.

a.What is the value of the factory?

b.Is the factory a good investment?

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