Question
Problem 5-18 Present Values (LO2) A factory costs $460,000. You forecast that it will produce cash inflows of $150,000 in year 1, $210,000 in year
Problem 5-18 Present Values (LO2)
A factory costs $460,000. You forecast that it will produce cash inflows of $150,000 in year 1, $210,000 in year 2, and $360,000 in year 3. The discount rate is 12%.
a. What is the value of the factory? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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b. Is the factory a good investment?
multiple choice
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Yes
-
No
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Entrepreneurial Finance
Authors: M. J. Alhabeeb
1st Edition
1118691512, 978-1118691519
