A factory can be worth $500,000 or $1,000,000 in 2 years, depending on product demand, each with

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A factory can be worth $500,000 or $1,000,000 in 2 years, depending on product demand, each with equal probability. The appropriate cost of capital is 6% per year.What is the present value of the factory?

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Corporate Finance An Introduction

ISBN: 9780321277992

1st Edition

Authors: Ivo Welch

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Question Posted: Oct 25, 2024 08:01 AM

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A factory can be worth $500,000 or $1,000,000 in 2 years, depending on product demand, each with

Question:

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Corporate Finance An Introduction

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