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A factory costs $420,000. You forecast it will produce cash inflows of $132,000 in year 1, $270,000 in year 2, and $360,000 in year 3.
A factory costs
$420,000.
You forecast it will produce cash inflows of
$132,000
in year 1,
$270,000
in year 2, and
$360,000
in year 3. The cost of capital is
9%.
What is the net present value (NPV) of the factory?
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