A factory costs $450,000 You forecast that it will produce cash inflows of $145,000 in year 1, $205,000 in year 2, and $350,000 in year 3 The discount rate is 10 a Calculate the PV of cash inflows (Do not round intermediate calculations Round your answer to 2 decimal places ) Present value $ b Is the factory a good investment No Yes

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Question: A factory costs $450,000. You forecast that it will produce cash inflows of $145,000 in year 1, $205,000 in year 2, and $350,000 in year

A factory costs $450,000. You forecast that it will produce cash inflows of $145,000 in year 1, $205,000 in year 2, and $350,000 in year 3. The discount rate is 10%.

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

Present value

Is the factory a good investment?

	No
	Yes

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