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investor is looking at building a factory to make widgets. She estimates the cost of the factory to be $5,000. She is looking at a
investor is looking at building a factory to make widgets. She estimates the cost of the factory to be $5,000. She is looking at a three-year life of the factory and expects to see revenue streams of $1,000 in year 1, $2,000 in year 2 and $3,000 in year 3. She borrows money from a bank at 12%. What is her NPV? Should she go ahead with this project? Approximately what would her MEC be? Round off decimals.
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