Calculate the pv of cash inflows should the company invest


A factory costs $687,860. You forecast that it will produce cash inflows of $484,067 in year 1, $115,000 in year 2, and $180,000 in year 3. The discount rate is 12.00%.

a. Calculate the PV of cash inflows. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value $

b. Should the company invest in the factor?

The firm should not investThe firm should invest

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Financial Management: Calculate the pv of cash inflows should the company invest
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