Question
A factory costs $420,000. You forecast that it will produce cash inflows of $130,000 in year 1, $190,000 in year 2, and $320,000 in year
A factory costs $420,000. You forecast that it will produce cash inflows of $130,000 in year 1, $190,000 in year 2, and $320,000 in year 3. The discount rate is 10%.
b.Is the factory a good investment?
- Yes
- No
a.What is the value of the factory?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Practical Financial Management
Authors: William R. Lasher
7th edition
128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683
