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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

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%.

  1. what is the net present value of the factory?
  2. What will the factory be worth at the end of six years?

my concern is regarding question 2. i have the answer, but what i dont understand is, why would we put (10 years minus 6 years) for t in the PV of annuity equation. Doesnt the question want the amount for the end of six years, so why not use (6 years) instantly for t please solve on paper and explain in details why would we use 10-6 instead of 6 for t = period

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