Question
A factory costs $925,560. You forecast that it will produce cash inflows of $591,874 in year 1, $95,000 in year 2, and $320,000 in year
A factory costs $925,560. You forecast that it will produce cash inflows of $591,874 in year 1, $95,000 in year 2, and $320,000 in year 3. The discount rate is 10.00%. a. Calculate the PV of cash inflows. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a.Present value b. Should the company invest in the factor?
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Personal Finance Turning Money Into Wealth
Authors: Arthur Keown
8th Edition
0134730364, 978-0134730363
