What is the value of the factory is the factory a good


A factory costs $500,000. You forecast that it will produce cash inflows of $145,000 in year 1, $205,000 in year 2, and $350,000 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.)

b. Is the factory a good investment?

Yes

No

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Financial Management: What is the value of the factory is the factory a good
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