Question
A factory costs $555,925. You forecast that it will produce cash inflows of $269,402 in year 1, $135,000 in year 2, and $270,000 in year
A factory costs $555,925. You forecast that it will produce cash inflows of $269,402 in year 1, $135,000 in year 2, and $270,000 in year 3. The discount rate is 6.00%.
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?
A factory costs $555,925. You forecast that it will produce cash inflows of $269,402 in year 1, $135,000 in year 2, and $270,000 in year 3. The discount rate is 6.00%. |
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? |
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
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