Q1- A factory costs $420,000. You forecast that it will produce cash inflows of $130,000 in year 1, $190,000 in year 2, and $320,000 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.)

Q2- If a bank pays 6.8% interest with continuous compounding, what is the effective annual rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)