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A factory costs $ 5 4 0 , 0 0 0 . You forecast that it will produce cash inflows of $ 1 7 0

A factory costs $

540, 000 .

You forecast that it will produce cash inflows of $

170, 000

in year

1,

230, 000

in year

2,

and $

400, 000

in year

3 .

The discount rate is

11 % .

What is the value of the factory?

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