Question
A factory costs $995,760. You forecast that it will produce cash inflows of $638,459 in year 1, $255,000 in year 2, and $200,000 in year
A factory costs $995,760. You forecast that it will produce cash inflows of $638,459 in year 1, $255,000 in year 2, and $200,000 in year 3. The discount rate is 11.50%. a. Calculate the PV of cash inflows. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ b. Should the company invest in the factor?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
3rd Edition
007337590X, 9780073375908
