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

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You are thinking of making an investment in a new factory. The factory will generate revenues of $1,060,000 per year for as long as you maintain it. You expect that the maintenance costs will start at $68,080 per year and will increase 5% per year thereafter. Assume that all revenue and maintenance costs occur at the end of the your You iend to run the factory as long as it continues to make a positive cash flow (as long as the cash generated by the plant exceeds the maintenance costs) The factory can be built and become operational immediately and the interest rate is 8% por your a. What is the present value of the revervuos? b. What is the prosent value of the maintenance costs? c. the plant conts 516.800,000 to build should you invest in the factory

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