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A factory costs $920,000. You reckon that it will produce an inflow after operating costs of $182,000 a year for 10 years. a. If the

A factory costs $920,000. You reckon that it will produce an inflow after operating costs of $182,000 a year for 10 years.

a.

If the opportunity cost of capital is 10%, what is the net present value of the factory?

b.

What will the factory be worth at the end of three years?

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