Discussion Post: Time Value of Money
A factory costs $800,000. You think it will produce a net cash inflow of $170,000 a year for 10 years. (i) If the discount rate is 14%, is it a good idea to buy the factory for the $800,000 asking price? (ii) What will the factory be worth after 5 years, in other words, what is the price that you can sell the factory for at the end of period 5?
The response should include a reference list. Using double-space, Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.