Question: Applying Time Value Factor A factory costs $ 5 5 4 , 0 4 0 . You forecast that it will produce cash inflows of

Applying Time Value Factor
A factory costs $554,040. You forecast that it will produce cash inflows of $102,730 in year 1, $235,000 in year 2, and $300,000 in year 3. The discount rate is 10.00%.
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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