Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Old MathJax webview a factory cost $520,000 for cast that it will produce cash inflows of 160000 in year 1 220,000 a year or two

Old MathJax webview

a factory cost $520,000 for cast that it will produce cash inflows of 160000 in year 1 220,000 a year or two and three hundred and eighty thousand a year 3 the discount rate is 10%

image text in transcribed

A factory costs $520.000. You forecast that it will produce cash inflows of $160,000 in year 1, $220,000 in year 2, and $380,000 in year 3. The discount rate is 10%. a. What is the value of the factory? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of the factory b. is the factory a good Investment? Yes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Conservation Of Tropical Rainforests A Review Of Financial And Strategic Solutions

Authors: Brian Joseph McFarland

1st Edition

3319632353, 3319632361, 9783319632353, 9783319632360

More Books

Students also viewed these Finance questions

Question

Explain strong and weak atoms with examples.

Answered: 1 week ago

Question

Explain the alkaline nature of aqueous solution of making soda.

Answered: 1 week ago

Question

Comment on the pH value of lattice solutions of salts.

Answered: 1 week ago