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You are thinking of making an investment in a new bactory. The factory will generate revenues of $1,060,000 per your for as long as you

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You are thinking of making an investment in a new bactory. The factory will generate revenues of $1,060,000 per your for as long as you maintain at. You expect that the mairtenance costs wil start at \$61.480 per year and will increase 5% per year hereaher. Aswome that al revenue and maintonance costs cocur at tho end of the year. You inlond to run the fsetory as long as il contirues to make a postive cash fow (as long as the cash generated by the plant exceeds the maintenance conte). The factocy can be bult and bocome opocasonal mmedutey and the interest rate is 6% per yoar. a. What is the present value of the revenues? b. What is the present vilue of the maintenance costs? c. If the plant costs $10,600,000 to buld, should you invest in the factsy

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