A factory costs $270,000. You forecast that it will produce cash inflows of $75,000 in year 1,
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A factory costs $270,000. You forecast that it will produce cash inflows of $75,000 in year 1, $135,000 in year 2, and $210,000 in year 3. The discount rate is 11%.
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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