Question
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? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. Is the factory a good investment?
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
9th Edition
0814408648, 978-0814408643
