Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer part b. Problem 2-14 Present values A factory costs $910,000. You reckon that it will produce an inflow after operating costs of $181,000
Please answer part b.
Problem 2-14 Present values A factory costs $910,000. You reckon that it will produce an inflow after operating costs of $181,000 a year for 15 years. a. If the opportunity cost of capital is 17%, what is the net present value of the factory? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Net present value 53677.89 b. What will the factory be worth at the end of four years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Future value $ 339173.5Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started