Question
A factory costs $800,000. You reckon it will produce an inflow after operating costs of $170,000 a year for 10 years. If the opportunity cost
A factory costs $800,000. You reckon 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 (NPV) of the factory?
NPV=PV of cash inflows - PV of cash outflows.
How do you figure out the PV of cash inflows for this problem?
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Finance Applications and Theory
Authors: Marcia Cornett
4th edition
1259691411, 978-1259691416
