A factor costs $540,000. You forecast that it will produce cash inflows of $170,000 in year 1,
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A factor costs $540,000. You forecast that it will produce cash inflows of $170,000 in year 1, $230,000 in year 2, & $400,000 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.) Value of the factory= B) Is the factory a good investment? Yes or No?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
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