Question
KED Group is considering buying a new factory. This will have cash flows of $16,000, $5,000 and $4,000 (in thousands) for years 1 through 3.
KED Group is considering buying a new factory. This will have cash flows of $16,000, $5,000 and $4,000 (in thousands) for years 1 through 3. What is the approximate value of this investment today if the appropriate discount rate is 5% per year?
you need to calculate the PV of each cash flow and then add it up
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The Oxford Handbook Of Computational Economics And Finance
Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du
1st Edition
0199844372, 978-0199844371
