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


A factory costs $530,000. You forecast that it will produce cash inflows of $165,000 in year 1, $225,000 in year 2, and $390,000 in year 3. The discount rate is 12%.

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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