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A factory costs $ 8 0 0 , 0 0 0 . You reckon that it will produce an inflow after operating costs of $

A factory costs $800,000. You reckon that it will produce an inflow after operating costs of $170,000 a year for 10 years. If the opportunity cost of capital is 14%, what is the net present value of the factory? What will the factory be worth at the end of five years?

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