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A widget factory costs $800,000 and will produce net cash ow starting next year of $150,000 per year for 10 years after which it will
A widget factory costs $800,000 and will produce net cash ow starting next year of $150,000 per year for 10 years after which it will turn to dust. If the discount rate is 12%, what is the NPV? How much is the factory worth right after you invest the $800,000? What will the factory be worth at the end of year 5?
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