Question
A factory costs $498,400. You forecast that it will produce cash inflows of $200,074 in year 1, $155,000 in year 2, and $340,000 in year
A factory costs $498,400. You forecast that it will produce cash inflows of $200,074 in year 1, $155,000 in year 2, and $340,000 in year 3. The discount rate is 10.50%.
a. Calculate the PV of cash inflows. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $
b. Should the company invest in the factor?
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Bond Markets Analysis And Strategies
Authors: Frank J. Fabozzi
6th Edition
0131986430, 9780131986435
