Question
A firm is considering purchasing a factory for $1 million. The factory will yield a positive cash flow of $200,000 at date 1, $300,000 at
A firm is considering purchasing a factory for $1 million. The factory will yield a positive cash flow of $200,000 at date 1, $300,000 at date 2, and then will be sold for $900,000 at date 3. The appropriate interest rate is 12%. Should the firm purchase the factory?
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
2nd Edition
0324289235, 9780324289237
